Relationship between Greenhouse Gas Emissions and Inequality by the Example of EU Member Countries

Rapid economic development, based on industrialization and urbanization, has introduced a number of problems. Modern sustainable development policies confront us with two interconnected challenges: reducing inequality and climate change mitigation.Traditionally the issues of economic inequality and greenhouse gas (GHG) emissions were considered apart. However, the issue of world sustainable development demand a conjoint solution to the issue of GHG and economic inequality. Nowadays political and scientific community is focusing on inter-country inequality and the responsibility of each country separately for reducing greenhouse gas emissions, while to in-country inequality and its relationship with climate changes is given less attention. The analysis in this paper shows that the existing European climate practices ( carbon tax and ETS) in most cases contradict to the issues of reducing the gap between the rich and the poor. Attempts made by European countries to reduce emissions within the framework of Kyoto Protocol and Paris Climate Change Agreement enhance economic inequality. This study aims to introduce a number of specific principles that can bond the solutions to global problems of climate change and inequality. The main principles that will be suggested in this work are progressive carbon payments on individuals, a tax on wealth, a part from which, should be transfered to solve climate problems, system of financial transparency and Personal carbon allowance. This study will contribute to the existing knowledge about in-county inequality in the European Union, as well as climate change mitigation. Key words: climate change mitigation, distribution of income, EKC, GHG , inequality, progressive carbon payments