Study on the relationship between economic growth and environmental pollution in Ningbo city

Chinese economy has experienced steadily high growth in recent two decades, while the issue of environmental pollution is becoming more and more outstanding. Under the circumstances, this paper tries to investigate the relation between economic growth and environmental pollution, illustrated by the case of Ningbo city. We first use the method of principal component analysis to build comprehensive environmental quality indicators that can reflect the overall environmental quality based on the data of three industrial wastes from the year of 1990 to 2009o After the unite root test, co-integration test and Granger causality test, we formulate a quadratic multinomial model and cubic polynomial model for research.