Environmental Kuznets Curves in the People’s Republic of China: Turning Points and Regional Differences

25 Pages Posted: 13 Jun 2011

See all articles by Yi Jiang

Yi Jiang

Asian Development Bank

Tun Lin

University of Cambridge - Faculty of Economics and Politics; World Bank

Juzhong Zhuang

Consultant

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

Jiang, Yi and Lin, Tun and Zhuang, Juzhong, Environmental Kuznets Curves in the People’s Republic of China: Turning Points and Regional Differences (June 9, 2011). Available at SSRN: https://ssrn.com/abstract=1861568 or http://dx.doi.org/10.2139/ssrn.1861568

Yi Jiang (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Tun Lin

University of Cambridge - Faculty of Economics and Politics ( email )

Austin Robinson Building
Sidgwick Avenue
Cambridge, CB3 9DD
United Kingdom

World Bank

1818 H Street, N.W.
Washington, DC 20433
United States

Juzhong Zhuang

Consultant ( email )

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