HYPOTHESIS OF ENVIRONMENTAL KUZNETS CURVE AND ITS TEST IN CHINA

Since the beginning of reform and opening-up,average annual economic growth of 9.8 percent in China has attracted worldwide attention.However,there are still lots of controversy about the environmental costs of China economic growth.Environmental Kuznets Curve(EKC) hypothesis,the classic study of the relationship between environment and income statements,visually shows changes in the environment and income.Because of flaws of previous EKC studies using one or more indicator measuring the extent of pollution,this paper based on 6 environmental pollutants from 1982 to 2006,improved the entropy calculated on behalf of China's environmental situation as a whole environmental pollution index,and using co-integration tests to study the effect of environmental Kuznets curve and the existence of localization features in China.Different from both developed and emerging and developing countries in general upset U-type environmental Kuznets curve,the model showed China's comprehensive environmental pollution is U type.The early of 21st century as a dividing line,before this time the environmental pollution level was declining,then environmental pollution has started in deterioration.By using the impulse response function to study the environmental pollution and economic growth,this paper revealed that economic growth in the number of retrospective on environmental pollution affected positively by environmental pollution only in the short term for role in the promotion of economic growth.The study is designed to set up policy coinciding with the development of China's economy and the environment,and provides a theoretical basis of economic development in harmony with the environment,but also will promote the further development and improvement of the EKC hypothesis.