Abstract

Amidst China's wealth of resources, not all are harnessed effectively. With a surging economy and population, enhancing ecological capacity through more efficient resource use is imperative. This study examines panel data from 2012 to 2020 to probe how wealth inequality influences 30 Chinese regions' resource efficiency. Rigorous analysis yielded strong explanatory power. Notably, disparities in green innovation capabilities and natural resource abundance emerge as primary drivers of differentiation. Findings indicate that a nation's wealth gap directly impacts its ecological innovation capacity and sustainable resource provision. Significant income disparities correlate with reduced resource efficiency, underscoring the role of economic inequality. Addressing this issue, strategies like industry clustering and eco-friendly tax policies can mitigate economic disparities' negative influence on resource efficiency. Furthermore, this study spotlights disruptive technological advancements, challenging the traditional inverse link between economic inequality and resource efficiency, and offering promising avenues for a greener future.

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