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The aim of this paper is to test whether income inequality contributes to environmental degradation in China and India, where both countries are giving a great concern about the implications of their unsustainable energy consumption to the environment not only to themselves but also to the global environmental sustainability. By applying the bounds test approach to cointegration we found in both countries a long-run but not a statistically significant relationship between income inequality and CO 2 emissions both in the long-run and in the short-run. The robustness of our cointegration results is also ascertained by using three different long-run tests. Furthermore, applying the variance decomposition analysis to examine the dynamic causal relationship between the Gini coefficient of income distribution and CO 2 emissions, we found that income inequality was the least important factor in determining CO 2 emissions and that there was no causality running in any direction between CO 2 emissions and income inequality in both countries. Still income and energy consumption are the major determinants of CO 2 emissions in both countries. Nevertheless, even though the evidence is not statistically significant, in the case of China it indicates that reducing income inequality can have a positive impact on environmental quality, while in India redistributing income to improve environmental degradation may not be effective. [ABSTRACT FROM AUTHOR]

This paper presents a comparison of the changes in the energetic metabolic pattern of China and India, the two most populated countries in the world, with two economies undergoing an important economic transition. The comparison of the changes in the energetic metabolic pattern has the scope to characterize and explain a bifurcation in their evolutionary path in the recent years, using the Multi-Scale Integrated Analysis of Societal and Ecosystem Metabolism (MuSIASEM) approach. The analysis shows an impressive transformation of China׳s energy metabolism determined by the joining of the WTO in 2001. Since then, China became the largest factory of the world with a generalized capitalization of all sectors, especially the industrial sector, boosting economic labor productivity as well as total energy consumption. India, on the contrary, lags behind when considering these factors. Looking at changes in the household sector (energy metabolism associated with final consumption) in the case of China, the energetic metabolic rate (EMR) soared in the last decade, also thanks to a reduced growth of population, whereas in India it remained stagnant for the last 40 years. This analysis indicates a big challenge for India for the next decade. In the light of the data analyzed both countries will continue to require strong injections of technical capital requiring a continuous increase in their total energy consumption. When considering the size of these economies it is easy to guess that this may induce a dramatic increase in the price of energy, an event that at the moment will penalize much more the chance of a quick economic development of India. [ABSTRACT FROM AUTHOR]