Could ecological restoration reduce income inequality? An analysis of 290 Chinese prefecture-level cities

Ecosystem degradation and the serious wealth gap caused by rapid economic development have become problems that cannot be neglected during the progress of pursuing sustainable development and reducing income inequality in China. To determine whether ecological restoration such as vegetation cover could affect the income gap, we used data for 290 prefecture-level cities in China from 2007 to 2018 and analyzed the effect of ecological restoration on income inequality in China. In addition, we chose the year 2012 as a boundary and performed heterogeneity analysis to permit a detailed comparison of the variation in the effect over time. We found that ecological restoration can reduce income inequality in general, but this effect was not statistically significant until 2012. However, due to some practical obstacles (e.g., employment opportunities, educational attainment, social discrimination), reducing income inequality through ecological restoration will be a time consuming process and requires constant effort from the Chinese government and local managers such as funding green industries, providing more targeted technical training for the poor and social services for the rural migrant workers.