Exploring the Relationship between Economic Growth and Environmental Pollution in China Based on Simultaneous Equations and State-space Model

Abstract

Abstract:

Most of the researches only pay attention to the one-way effect of the economy on the pollution and ignore the negative impact of pollution on the growth, leading to the diversity of the environmental Kuznets curve. This study estimates the dynamic two-way coupling relationship between economic growth and environmental pollution based on the panel data of 30 provinces during 2000-2014 using Simultaneous-equation and State-space model. The empirical results show that there exists inverted "U"-shape EKC between per capita GDP and Environmental pollution index in China. Meanwhile, we find the elasticity of economic growth to environmental pollution has been reduced after 2012, which shows that environmental protection has achieved good results and enhance coordination of environmental protection and economic growth in recent years.

Key words: economic growth, environmental pollution, environmental Kuznets curve, state-space model

Wang Mingli. Exploring the Relationship between Economic Growth and Environmental Pollution in China Based on Simultaneous Equations and State-space Model[J]. , 2016, 28(7): 75-84.

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