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

Jun Zhao, Kangyin Dong () and Farhad Taghizadeh-Hesary
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Jun Zhao: School of Economics and Management, Beijing University of Chemical Technology, 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

Journal of Environmental Assessment Policy and Management (JEAPM), 2023, vol. 25, issue 02, 1-34

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.

Keywords: Green growth; income inequality; SYS-GMM approach; mediating effects; China (search for similar items in EconPapers)
JEL-codes: C31 O18 O44 Q56 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1142/S1464333223500114

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