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Can the Low-Carbon Transition Impact the Urban–Rural Income Gap? Empirical Evidence from the Low-Carbon City Pilot Policy

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  • Tingwei Chen

    (School of Economics, Shandong Normal University, Jinan 250358, China)

  • Zongbin Zhang

    (School of Economics, Shandong Normal University, Jinan 250358, China)

Abstract

Environmental transformation is a broad and profound economic and social systemic change, which will certainly influence a number of the economic system fields. In particular, does China’s continued low-carbon transition widen the urban–rural income gap while achieving energy conservation and emission reduction targets? This research investigates the effects of low-carbon city pilot (LCCP) programs on urban-rural income gaps and associated mechanisms using a panel of 282 prefecture-level cities from 2007 to 2021. The analysis finds that: (1) LCCP policies exacerbate the urban-rural income disparity in general. In pilot cities, policy implementation widens the urban-rural income difference by roughly 0.5% on average when compared to non-pilot cities. (2) LCCP policies have a direct U-shaped association with employment structure and have a favorable influence on employment structure. (3) The LCCP policies have an inverted U-shaped association with regional innovation capacity, and the LCCP policies have a positive influence on regional innovation capacity. (4) The effects of LCCP policies on urban-rural income disparities vary dramatically between cities based on geography, city size, and resource endowment. The Chinese government should break down market segmentation and encourage urban-rural integration in order to foster technical advancement and scientific and technology innovation, therefore closing the urban-rural income gap and attaining high-quality economic growth in China.

Suggested Citation

  • Tingwei Chen & Zongbin Zhang, 2023. "Can the Low-Carbon Transition Impact the Urban–Rural Income Gap? Empirical Evidence from the Low-Carbon City Pilot Policy," Sustainability, MDPI, vol. 15(7), pages 1-21, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:5726-:d:1106708
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    1. Zixun Guo & Zhimei Gao & Wenbin Zhang, 2023. "Accounting and Decomposition of Energy Footprint: Evidence from 28 Sectors in China," Sustainability, MDPI, vol. 15(17), pages 1-24, September.

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