Climate Change and Inequality

This chapter investigates the impact of climate vulnerability on pre-tax income inequality across MENA countries over 1996–2021. Using random-effects panel models, it examines the direct effect and interactions with agricultural employment and institutional quality. Four econometric models explore these relationships, finding that climate vulnerability is positively associated with inequality, with agricultural dependence and weak institutions intensifying the effect. Food security and ecosystem degradation emerge as key drivers. Graphical analysis shows non-linear country dynamics. Findings emphasize the complex interplay of environmental, economic, and institutional factors, offering insights for targeted policy interventions to mitigate the socio-economic consequences of climate risks.