Environmental Kuznets Curves in the People’s Republic of China: Turning Points and Regional Differences
25 Pages Posted: 13 Jun 2011
Date Written: June 9, 2011
Abstract
This paper examines the relationship between economic growth and environmental sustainability in China by empirically estimating the Environmental Kuznets Curve (EKC) models using provincial-level panel data from 1985 to 2005. The results show that there exists an inverted-U shape relationship as hypothesized by the EKC model between per capita income and per capita emissions (or discharges) in the cases of waste gas from fuel burning and waste water, with a turning point at $12,903 and $3,226, respectively, in purchasing power parity (PPP) terms. This relationship does not hold in the case of waste gas from production or solid waste. The estimation results from the model allowing region-specific slope coefficients show that the EKCs of the more developed coastal region have a flatter rising portion with turning points occurring at a higher income level than those of the less developed central and western regions. The paper argues that this may reflect technology diffusion and institution imitation across regions at different stages of development. Policy implications of these findings are discussed.
Keywords: Environmental Kuznets Curve, environmental sustainability, waste gas, solid waste, waste water
JEL Classification: O13, Q56
Suggested Citation: Suggested Citation
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