Income inequality, carbon emissions, and green development efficiency

Area of Science:

• Environmental Economics
• Sustainable Development
• Regional Economics

Background:

• Income inequality is a multifaceted issue impacting social well-being, health, and environmental outcomes.
• China's strategy for green development and carbon neutrality is influenced by socioeconomic factors like income distribution.

Purpose of the Study:

• To analyze the relationship between income inequality, carbon emissions, and green development efficiency in China.
• To investigate how regional economic development levels moderate these relationships.
• To provide insights for shared prosperity and environmental policies.

Main Methods:

• Panel data analysis of 205 Chinese cities from 2010 to 2020.
• Application of a panel model with a partial linear functional coefficient.
• Empirical testing of the impact of income inequality under varying regional economic development.

Main Results:

• Income inequality significantly affects both carbon emissions and green development efficiency.
• Worsening income inequality generally increases carbon emissions, with a complex increase-decrease-flattening pattern linked to economic development.
• Income inequality exhibits an inverted U-shaped effect on green development efficiency, with a growing number of cities showing an inhibitory effect over time.

Conclusions:

• Income inequality is a critical factor in China's environmental and development strategies.
• Policy interventions should consider the nuanced and evolving impact of income inequality on carbon emissions and green development.
• Addressing income inequality is crucial for achieving China's goals of shared prosperity, carbon peaking, and carbon neutralization.