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

Yang Liu (), Kun Wang () and Jianda Wang ()
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Yang Liu: University of International Business and Economics
Kun Wang: The Hong Kong Polytechnic University
Jianda Wang: The Hong Kong Polytechnic University

Economic Change and Restructuring, 2024, vol. 57, issue 6, No 86, 35 pages

Abstract: 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.

Keywords: Air pollution; Common prosperity; Spatial Durbin model (SDM); Human capital (search for similar items in EconPapers)
JEL-codes: C21 D63 I18 J24 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10644-024-09838-z

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