Income Inequality and Carbon Emissions in the United States 1929–2019

This paper studies the relationship between income inequality and carbon emissions in the United States between 1929 and 2019. We contribute to the literature by studying if and how the relationship has varied over time. To this end we estimate a band spectrum regression model and a smooth-varying coefficients model. Our results show that higher inequality was associated with lower emissions during the early part of the sample and higher emissions towards the end of the sample.