Space-Time Dynamics of Regional Income and Air Pollution in China

Alvaro Dominguez, Jiaqi Li and Carlos Mendez

No 2024-03, AGI Working Paper Series from Asian Growth Research Institute

Abstract: Relying on a novel satellite dataset, we examine the spatial distribution of air pollution, specifically PM2.5, and income across 285 Chinese prefectural and above-level cities. A static spatial dependence analysis reveals the locations of high-value clusters (hot spots) and low-value clusters (cold spots), highlighting a strong negative assosiation between income and air pollution. Then, through dynamic spatial clustering techniques, we study the intertemporal relationship between air pollution and income and find a polarization effect between different regions. Our integrated approach demonstrates how these analyses complement each other in identifying regions where policies to enhance air standards can improve the population's quality of life.

Keywords: Air Pollution; China; Local Indicators of Spatial Association (search for similar items in EconPapers)
JEL-codes: C15 O33 P11 P18 Q42 (search for similar items in EconPapers)
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