Impact assessment of poverty alleviation on carbon inequality: evidence from households in China

Abstract

Inequality and climate change are major challenges for sustainable development, but a dilemma between the objectives has been widely observed. Based on the panel data of China Household Finance Survey (CHFS), inequality in carbon emissions across income groups is witnessed, which provides basics for the study. From a quasi-natural experiment, an increase of 9.9% in household per capita carbon emissions (HCEs) of the impoverished group is found after the Targeted Poverty Alleviation policies (TPA) in China, providing evidence for the enhancement of poverty alleviation measures on equal right for household carbon emissions. Specifically, dual mechanism of transfer payments and employment assistance acting as direct and indirect strategies to enhance family wealth are examined as the pathways to carbon equality. Further, a decline in household carbon emission intensity in the impoverished group is also observed after the treatment, which implies the accelerating role of TPA in low-carbon lifestyle formulation for the impoverished families. The findings of this paper confirm the positive effect of TPA policies on carbon equality for households, and also refute the "equality-pollution dilemma", which provide insights for policy makers in formulating equitable decarbonization policies and allocating the carbon budget.