The impact of city gas on income inequality in China: A regional heterogeneity analysis

City gas plays a significant role in reducing pollution, facilitating life, and promoting economic development. In this study, the fixed effects panel regression model based on data for 30 provinces in China, covering 2005–2018, is employed to investigate the interrelationship between city gas and income inequality. Primarily, the impact of gas penetration, gas supply, gas users, and gas pipelines on income inequality in terms of three types of city gas (i.e., coal gas, liquified petroleum gas (LPG), natural gas) is discussed. Then, a heterogeneity analysis of the influence of city gas consumption on income inequality is conducted based on the spatial distribution, economic development, and proportion of gas access. According to the empirical results, the total gas penetration increases while the gas penetration rate plunges. For different types of city gas, the impact of coal gas and natural gas consumption on income inequality is significantly negative. In other words, expanding natural gas consumption can effectively narrow income inequality. Furthermore, the impact of LPG consumption on income inequality is positive. In addition, improvement in the economic level coming from city gas can narrow income inequality. In conclusion, several policy implications for promoting natural gas development and narrowing income inequality are highlighted.