The Role of Education and Income Inequality on Environmental Quality: A Panel Data Analysis of the EKC Hypothesis on OECD Countries

This study examines the impact of education on pollution–income relationship, controlling for income inequality in 17 European OECD countries over period 1950–2015. We developed a novel two-stage algorithm, whose first step consists applying clustering techniques to group according temporal pattern. In second step, we estimate educational-mitigated EKC hypothesis (Educational EKC) by employing panel regression accounting endogeneity issues. The findings suggest existence high variability levels across and heterogeneous development patterns. Empirical estimates highlight that, countries, Educational holds, that emissions–income elasticity appears decline when including schooling level. low cluster, these effects are not clear-cut. For propose different specification EKC, which substitutes per capita term with years schooling. new is statistically validated both countries. conclusion, can state should be addressed as crucial cornerstone shaping curve.