It appears that the Markdown reader, as a rule, treats any unknown 
environment as block-level content (rather than inline). While this seems 
to be the desired behaviour, it has side effects when the output format is 
(newline-sensitive) LaTeX. This was previously reported here:

   - https://github.com/jgm/pandoc/issues/3309#issuecomment-284679731
   - 
   https://groups.google.com/forum/#!searchin/pandoc-discuss/latex$20environment|sort:relevance/pandoc-discuss/P3fV_0jw9-U/DUpSrWYxaAkJ
   
This affects users wanting to create LaTeX documents in a convenient 
fashion by first writing a Markdown file containing occasional LaTeX 
environments, then converting to LaTeX and feeding the resulting LaTeX into 
a pdflatex workflow. The extra newlines produced in this process affect the 
LaTeX parsing, leading to unwanted (and inconsistent) vertical space in the 
final document (see simple example below).

Is there a way to make Pandoc omit the newlines?

$ cat test.md
Testing environment
\begin{equation}
    i^2=-1
\end{equation}
for whitespace.
$ pandoc -f markdown -t latex -o test.tex test.md
$ cat test.tex
Testing environment

\begin{equation}
    i^2=-1
\end{equation}

for whitespace.
$ pandoc --version
pandoc 1.19.2.4
Compiled with pandoc-types 1.17.0.5, texmath 0.9.4.2, skylighting 0.1.1.5
[...]

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