The Hypothesis of Environmental Kuznets Curve and its Test in China
Chen Shi-qing
Abstract
Chen Shi-qing
Abstract
The balanced development between economy and environment is of crucial importance to China. The paper bases on the hypothesis of Environmental Kuznets Curve. Then we establish the panel data model in purpose of analyzing relationship between economic growth and environmental pollution in China with panel data: cross sections are almost all provinces of China and time series of 1989-2004. Further more, we apply the FEM and REM to estimate the model. The result shows that: Environmental Kuznets Curve does not exist in China up to now. Therefore, China can not repeat the developed countries' traditional model damage environment in order to growth, then cure it. So sustainable development should be the wise policy for China's industrialization .
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The balanced development between economy and environment is of crucial importance to China. The paper bases on the hypothesis of Environmental Kuznets Curve. Then we establish the panel data model in purpose of analyzing relationship between economic growth and environmental pollution in China with panel data: cross sections are almost all provinces of China and time series of 1989-2004. Further more, we apply the FEM and REM to estimate the model. The result shows that: Environmental Kuznets Curve does not exist in China up to now. Therefore, China can not repeat the developed countries' traditional model damage environment in order to growth, then cure it. So sustainable development should be the wise policy for China's industrialization .
Key concepts: Kuznets curve, China, Industrialisation, Panel data, Economics, Sustainable development, Environmental pollution, Order (exchange)