Impact of public environmental concern on urban-rural economic income inequality

Abstract

Reducing urban-rural income disparities is crucial for economic growth and sustainable development. Does combating environmental pollution contribute to reducing income inequality? Drawing on data gathered from 199 prefecture-level cities spanning 2011 to 2019, this study examines the impact of public environmental concern on urban-rural income gaps using a two-way fixed effects model and dynamic panel model. The study reveals that heightened public environmental awareness can impede the growth of farmers' income, exacerbating urban-rural income disparities with a delayed effect. This influence is more pronounced in densely populated areas, economically advanced regions, mid-regions, and low-pollution zones. Further investigations demonstrate that public environmental awareness can widen the economic divide between urban and rural areas by influencing environmental governance capabilities and deteriorating the employment landscape. These findings offer valuable insights for regions aiming to concurrently achieve shared prosperity and reduce carbon emissions.