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Moving Towards Sustainable Development: Can Narrowing Income Inequality Facilitate Green Growth in China?

Author

Listed:
  • Jun Zhao

    (School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, P. R. China)

  • Kangyin Dong

    (��School of International Trade and Economics, University of International Business and Economics, Beijing 100029, P. R. China)

  • Farhad Taghizadeh-Hesary

    (��School of Global Studies, Tokai University, Tokyo, Japan§TOKAI Research Institute for Environment and Sustainability (TRIES), Tokai University Tokyo, Japan)

Abstract

To test the dynamical linkage between inequality and green growth in China, the green growth index is gauged and the inequality–green growth nexus is detected by employing panel data from 2004 to 2017. The concrete impact channel of urbanisation is further tested in the inequality–growth nexus. The primary findings are presented as follows: (i) China’s green growth is improving, and widening income gap is reversing this active effect; (ii) the inhibiting effect of income inequality on green growth is mainly manifested in the promoting impact of inequality on economic growth and its deteriorative impacts on households’ wellbeing and the ecological environment; and (iii) the intermediary transmission role of urbanisation construction has been strongly proved; in other words, the widening income gap will further optimise the green and clean economy by boosting the construction of urbanisation. Following the above three findings, a series of policy recommendations are presented.

Suggested Citation

  • Jun Zhao & Kangyin Dong & Farhad Taghizadeh-Hesary, 2023. "Moving Towards Sustainable Development: Can Narrowing Income Inequality Facilitate Green Growth in China?," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 25(02), pages 1-34, June.
    • Handle: RePEc:wsi:jeapmx:v:25:y:2023:i:02:n:s1464333223500114
    DOI: 10.1142/S1464333223500114
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    More about this item

    Keywords

    Green growth; income inequality; SYS-GMM approach; mediating effects; China;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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