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<p>Achieving both income equality and green growth poses a major challenge for China’s sustainable development agenda. While prior studies have explored the effects of inequality on either economic or environmental outcomes, few have examined how this relationship varies across different regional ecological contexts. This paper investigates the nonlinear impact of income inequality on green growth, using panel data from 27 Chinese provinces over the period 2002–2019. We employ a feasible generalized least squares (FGLS) estimation and a sample-splitting approach based on natural capital dependence. The results reveal that in resource-dependent regions, income inequality and green growth exhibit an inverted U-shaped relationship; in contrast, a U-shaped relationship emerges in non-resource-dependent regions. Further analysis shows that technological innovation and human capital mediate this relationship primarily in resource-dependent areas, while economic growth serves as a channel in non-resource-dependent areas. This study contributes to the literature by highlighting the regional heterogeneity and mechanism pathways linking inequality to green development, offering nuanced insights for SDG-aligned policy design in developing economies.</p>

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Green growth under income inequality: heterogeneous economic pathways in China

  • 期刊论文

  • 发表日期：

    2026年2月12日

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  • Na Yan,
  • Youshuai Sun,
  • Mingwang Cheng

摘要

Achieving both income equality and green growth poses a major challenge for China’s sustainable development agenda. While prior studies have explored the effects of inequality on either economic or environmental outcomes, few have examined how this relationship varies across different regional ecological contexts. This paper investigates the nonlinear impact of income inequality on green growth, using panel data from 27 Chinese provinces over the period 2002–2019. We employ a feasible generalized least squares (FGLS) estimation and a sample-splitting approach based on natural capital dependence. The results reveal that in resource-dependent regions, income inequality and green growth exhibit an inverted U-shaped relationship; in contrast, a U-shaped relationship emerges in non-resource-dependent regions. Further analysis shows that technological innovation and human capital mediate this relationship primarily in resource-dependent areas, while economic growth serves as a channel in non-resource-dependent areas. This study contributes to the literature by highlighting the regional heterogeneity and mechanism pathways linking inequality to green development, offering nuanced insights for SDG-aligned policy design in developing economies.