The Unequal Suffer of Equal Swelter: Urban-Rural Income Inequality in a Warming Climate

Based on county-level data in China from 2000 to 2020, we study how and why high temperatures can cause urban-rural income disparity. We find that high temperatures significantly widen the urban-rural income disparity, and this conclusion remains robust after a series of robustness tests. In heterogeneityanalysis, the effect is stronger in regions of high agriculture dependence and low adaptation capability. In mechanism’s test, direct evidences also show the vulnerable rural labor productivity, and the disproportional rural investment reduction are the main factors. In the long run, the high-temperature-induced income disparity cannot be adapted away but rather accumulates, both in the past data and future projections. This articleprovides empirical evidence for the government to formulate energy-saving and emission reduction policies to curb climate change, and has important reference significance for China and other developing countries to narrow the urban-rural income inequality and promote common prosperity in the warming climate.