The Dynamic Relationships between Environmental Protection Expenditures, Income Inequality and Economic Growth: Panel Causality Approach for Selected OECD Countries

Abstract

In this study, relationships between environmental protection expenditures, income inequality, and economic growth were examined for selected OECD countries for the period 1995-2017 using Emirmahmutoglu and Kose (2011), and Konya (2006) panel causality tests. When the results obtained from the study are evaluated in general, it has been found that there is a causality relationship between environmental protection expenditures and economic growth from the former to the latter and there is also a bidirectional causality relationship between environmental protection expenditures and income inequality.