Relationship Between Environmental Pollution and Economic Growth in Shanghai of China

This paper discusses the Environmental Kuznets Curve(EKC) hypothesis in Shanghai and analyzes the factors driving the path of EKC.We aim to provide the less developed areas with experiences to design well strategy of development to cross over the turning point earlier of any potential EKC-thereby avoiding going through the same stages of growth that involve relatively high(and even irreversible) levels of environmental harm.This paper builds the regression models of relationship between per capita GDP and environmental pollution indicators using data from 1981 to 2005,through which the pattern and characteristics of EKC evolution for four environmental indicators are analyzed.The results indicate that there are inverted U-shaped relations between per capita GDP and four main environmental indicators.The results also show that all the 4 environmental indicators have surpassed the EKC peak and are stepping into decoupling.Particularly,three environmental indicators of emissions of urban smoke,industrial waste water and industrial COD crossed over the peak at lower per capita GDP.Finally,we discuss the driving forces to Shanghai's EKC evolution from industrial structure,environmental investment and environmental management using the Press-State-Response(PSR) system of policy analysis.