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Tragedy of pollution: Does air pollution hinder China’s progress toward achieving common prosperity?

Author

Listed:
  • Yang Liu

    (University of International Business and Economics)

  • Kun Wang

    (The Hong Kong Polytechnic University)

  • Jianda Wang

    (The Hong Kong Polytechnic University)

Abstract

Air pollution has emerged as a profoundly critical global environmental issue, primarily due to its adverse effects on human health and its impediment to national development. We investigate the spatial and heterogeneous impacts of air pollution on common prosperity across 295 cities in China from 2006 to 2020, using the spatial Durbin model. Moreover, our research explores the mediating effect of air pollution on common prosperity. The research results are summarized as follows: Firstly, there has been a distinct upward trend in China’s common prosperity in recent years. Secondly, air pollution significantly hinders common prosperity, and this impact shows a spatial spillover effect. Specifically, it not only affects the local realization of common prosperity but also has a detrimental effect on that of neighboring cities. Thirdly, heterogeneity analysis indicates that air pollution adversely affects the common prosperity of neighboring cities only in high-common-prosperity and high-air-pollution groups. Fourthly, air pollution hinders common prosperity by reducing the availability of human capital. This article offers a novel perspective on achieving common prosperity.

Suggested Citation

  • Yang Liu & Kun Wang & Jianda Wang, 2024. "Tragedy of pollution: Does air pollution hinder China’s progress toward achieving common prosperity?," Economic Change and Restructuring, Springer, vol. 57(6), pages 1-35, December.
    • Handle: RePEc:kap:ecopln:v:57:y:2024:i:6:d:10.1007_s10644-024-09838-z
    DOI: 10.1007/s10644-024-09838-z
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    More about this item

    Keywords

    Air pollution; Common prosperity; Spatial Durbin model (SDM); Human capital;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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