This　paper　investigates　the　interaction　effects　of　income　inequality　and　democracy　on　CO2　emissions.　The　spatial　panel　model,　which　accounts　for　the　spatial　spillover　effects　across　countries,　is　used.　Using　the　panel　data　covering　41　Belt　and　Road　initiative　countries,　the　results　indicate　significant　positive　spatial　spillovers　effect　to　country-level　CO2　emission　activity.　The　Kuznets　Curve　hypothesis,　which　assumes　that　reverse　U　relation　presents　between　income　and　CO2　emissions,　is　identified.　Empirical　results　provide　evidence　that　democracy　levels　promote　the　nonlinear　nexus　between　income　inequality　and　CO2　emissions.　High　levels　of　inequality,　ceteris　paribus,　in　conjunction　with　poor　democratic　institutions　are　likely　to　result　in　higher　pollution.　The　findings　are　robust　to　various　robustness　tests.　©　2019,　Springer-Verlag　GmbH　Germany,　part　of　Springer　Nature.