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The Impact of Green Economic Development on the Urban-Rural Income Gap

Zhongyue Li ()
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Zhongyue Li: University of New South Wales, Commerce

A chapter in Proceedings of the 2025 7th International Conference on Economic Management and Cultural Industry (ICEMCI 2025), 2025, pp 470-481 from Springer

Abstract: Abstract Based on panel data from 25 provincial-level regions in China spanning 2007–2020, this paper systematically analyzes the impact of green economy and its development on the urban-rural income gap, and further explores the underlying mechanisms. The findings indicate that improvements in green taxation and green technological innovation help narrow the urban-rural income gap. This conclusion remains robust across various model specifications. The green economy reduces income inequality by increasing educational spending or enhancing educational levels, promoting high-quality employment, and optimizing the income distribution structure. The effect is more significant in the eastern and central regions and in the secondary industry. This study deepens the understanding of the socio-economic effects of green transformation and offers theoretical and policy insights for optimizing green finance policies and promoting social equity.

Keywords: Green taxation; green innovation; income gap (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-888-2_46

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DOI: 10.2991/978-94-6463-888-2_46

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