Migrant Remittance, Agricultural Producer Services, and Environmental Pollution

This chapter established a general equilibrium model to study the effects of the changes of remittance rate in the urban-rural migrants’ income on environmental pollution. We found that, in the capital-specific case, the increase of urban-rural migrants’ remittance rate will increase the total remittance of the migrant workers, increase the demand of agricultural sector for agricultural producer services, and decrease the environmental level, but it has no influence on the output level of the urban industrial sector; and in the mobile capital case, the increase of urban-rural migrants’ remittance rate will increase the total remittance of the migrant workers, increase the demand of agricultural sector for agricultural producer services, decrease the output level of the urban industrial sector, and improve the environmental level.