Linking Climate Change with Economic Inequality: A Review Essay

This article examines the complex relationship between climate change and economic inequality, exploring both cross-country and within-country scenarios. Changes in average temperatures and precipitations are identified as significant contributors to cross-country inequalities. Several studies have also employed greenhouse gas (GHG) emissions, particularly carbon dioxide emissions, as an indicator of global warming. These studies show that the relationship between cross-country inequality and global warming is mixed and primarily depends on the pre-existing income levels of the countries being compared. The sudden onset of climate events exacerbates economic inequalities within a country. However, the extent of this impact varies depending on the adaptive capacities, occupation, and gender of individuals dwelling in the affected regions. In the case of within-country scenarios, gender emerges as a pivotal factor in the climate-inequality nexus, influencing labor division and accessibility to social infrastructure. This review highlights the multifaceted nature of the climate-inequality nexus and emphasizes the importance of incorporating both economic and social factors to inform effective policy interventions.