Narrowing urban-rural income gap and mitigating air pollution: Synergy or trade-off?

Abstract

A sustainable city refers to a city that achieves balanced development in economic, social, and environmental aspects, which is crucial for achieving sustainable development goals and improving human well-being. The interrelations between these dimensions of a sustainable city are complex and significant. This paper, based on city-month data, explores the impact of air pollution on the urban-rural income gap, along with its dynamic changes over time and during the urbanization process. Employing the 3SLS method and the moving window approach, it offers insights into how environmental sustainability at the city level influences social sustainability. The study reveals a trade-off between controlling air pollution and reducing the urban-rural income gap, with this trade-off varying across different stages of urbanization and changing over time. The findings of this study help deepen the understanding of sustainable cities and offer policy recommendations for better urban management by policymakers.