Does China Fall into Poverty-Environment Traps? Evidence from Long-term Income Dynamics and Urban Air Pollution

26 Pages Posted: 2 Apr 2019 Last revised: 7 May 2019

See all articles by Jianxin Wu

Jianxin Wu

Jinan University

Ling-Yun He

Jinan University

ZhongXiang Zhang

Tianjin University - Ma Yinchu School of Economics

Date Written: April 2, 2019

Abstract

This paper examines the long-run relationship between income and urban air pollution using a joint distribution dynamics approach. This approach enables to estimate the transition process and long-run distribution and to examine the mechanisms behind the evolution process. The approach is applied to a unique panel data of CO2, SO2 and PM2.5 (particulate matter smaller than 2.5μm) for 286 Chinese cities over the period 2002-2014. Strong persistence in the transition dynamics suggests that this convergence process may require a long time. The distribution dynamics analyses indicate that multiple equilibria are the major characteristics in the long-run relationship between income and urban air pollution in China, which implies that inter-regional technology spillover may be an important way to accelerate convergence. Our results further support the existence of poverty-environmental trap in PM2.5 concentrations. Thus, new environmental models are expected to be developed to explain this new stylized fact. The findings provide strong support for taking more aggressive measures that consider income and urban environment simultaneously to reduce poverty and air pollutions together in the Chinese cities.

Keywords: Income, Urban Air Pollution, Poverty-environment Trap, Distribution Dynamics Approach, China

JEL Classification: O13, O44, Q43, Q53, Q56, Q58

Suggested Citation

Wu, Jianxin and He, Ling-Yun and Zhang, ZhongXiang, Does China Fall into Poverty-Environment Traps? Evidence from Long-term Income Dynamics and Urban Air Pollution (April 2, 2019). FEEM Working Paper No. 5.2019. Available at SSRN: https://ssrn.com/abstract=3364177 or http://dx.doi.org/10.2139/ssrn.3364177

Jianxin Wu

Jinan University ( email )

Huang Pu Da Dao Xi 601, Tian He District
Guangzhou, 510632
China

Ling-Yun He

Jinan University ( email )

Huang Pu Da Dao Xi 601, Tian He District
Guangzhou, Guangdong 510632
China

ZhongXiang Zhang (Contact Author)

Tianjin University - Ma Yinchu School of Economics ( email )

92 Weijin Road, Nankai District
Tianjin 300072
China
+86 22 87370560 (Phone)

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