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A nexus of income inequality and natural resource utilization efficiency: Effect on the road to green economic recovery

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  • Liu, Zhen
  • Li, Ruotong
  • Cai, Renjie
  • Lan, Jing

Abstract

While China possesses abundant natural resources, their utilization efficiency remains low. As economic and social development progress rapidly, promoting natural resource utilization efficiency is crucial for the construction of the country's ecological capacity. However, research investigating the effect of income inequality on natural resource utilization efficiency is insufficient. Using the panel data of 30 provinces in China from 2011 to 2019, this paper analyzes the impact of income inequality on natural resource utilization efficiency. The empirical results denote that income inequality has a significantly negative impact on natural resource utilization efficiency and presents a discernible influence on lower green innovation ability and natural resource endowment. In addition, green fiscal policy and industrial agglomeration can alleviate the negative impact of income inequality on natural resource utilization efficiency. Furthermore, the threshold effect reveals that, with technological progress, the negative impact of income inequality on natural resource utilization efficiency has transformed into a positive.

Suggested Citation

  • Liu, Zhen & Li, Ruotong & Cai, Renjie & Lan, Jing, 2023. "A nexus of income inequality and natural resource utilization efficiency: Effect on the road to green economic recovery," Resources Policy, Elsevier, vol. 85(PA).
    • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pa:s0301420723003367
    DOI: 10.1016/j.resourpol.2023.103625
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