Looking at the Impacts of Income Inequality on Environmental Governance in China

Yao Bo Shi; Xin Xin Zhao; Chyi-Lu Jang; Qiang Fu; Chun-Ping Chang

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Published: Jul 1, 2019

Issue Vol. 14 No. 2 (2019)

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Yao Bo Shi, Xin Xin Zhao, Chyi-Lu Jang, Qiang Fu, Chun-Ping Chang

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Authors

Yao Bo Shi

cpchang@g2.usc.edu.tw

School of Economics and Management, Xi’an University of Technology, Xi’an, China, China

Xin Xin Zhao

cpchang@g2.usc.edu.tw

China School of Economics and Management, Xi’an University of Technology, Xi’an, China, China

Chyi-Lu Jang

cpchang@g2.usc.edu.tw

Department of Political Economy, National Sun Yat-Sen University, Kaohsiung, Taiwan, Taiwan, Province of China

Qiang Fu

cpchang@g2.usc.edu.tw

School of Economics and Management, Changsha University of Science and Technology, Changsha, Hunan, China, China

Chun-Ping Chang

cpchang@g2.usc.edu.tw

Shih Chien University at Kaohsiung, Kaohsiung, Taiwan, Taiwan, Province of China

Abstract

This research investigates the impacts of income inequality (proxied by the Gini index) on environmental governance (proxied by per capita government investments on industrial pollution prevention) by employing the panel fixed effect model, system generalized method of moments and bias-corrected least-squares dummy variables model for 23 provinces from 1995 to 2014. The results indicate that income inequality exhibits significantly positive impacts on government environmental governance investment in China, which reveals that an increase in income inequality may help to improve environmental governance in China; we thus offer several remittable implications for those policy makers in Chinese provinces as well as governments of emergent economies like China.

JEL codes: Q56, Q58, O15

Keywords:

income inequality, environmental governance, SYS-GMM, LSDVC

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Shi, Y. B., Zhao, X. X., Jang, C.-L., Fu, Q., & Chang, C.-P. (2019). Looking at the Impacts of Income Inequality on Environmental Governance in China. Problemy Ekorozwoju, 14(2), 63–70. Retrieved from https://ph.pollub.pl/index.php/preko/article/view/5080

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