The Environmental Kuznets Curve and Spatial Pattern of Environmental—Economy in China: Evidence from a Panel Cointegration Test
2010
Suocheng, Dong | Fei, Li | Zehong, Li | Xianfeng, Jin
This paper applies the panel unit root, heterogeneous panel cointegration test and panel—based dynamic OLS recently developed to re—investigate the Environmental Kuznets Curves for 30 provinces in mainland China from 1985 to 2007. The empirical results show that there is a positive long—term cointegrated relationship between economic growth and three types of environmental pollution. The relationships take on inverted U—shaped EKCs, but the turning points in these curves differ from those found in previous studies. We then analyze the spatial pattern of environmental—economy in China based on the estimations of this study. Most provinces in central and western China are not above the turning points of the EKCs, where industrial pollution emissions show an increasing trend. At present, China is subject to tremendous environmental pressures, and will need to meet enormous cost for pollution emissions reduction. However, environmental economic policies should differ over time and region.
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