An empirical research on relationship between economic growth and atmospheric pollution in China-Based on the panel data analysis approach

Abstract

The aim of this thesis is to research the relationship between economic growth and atmospheric pollution in China based on Environmental Kuznets Curve hypothesis. Three atmospheric pollutants are mainly tested in this research including industrial sulphur dioxide, industrial dust and industrial soot. Based on provincial economic and environmental data over 1991-2010, panel approach is applied to study the possible relationship. The result of unit root tests and cointegration test show that there exists the long-run cointegrating relationship between the emission of two pollutants and per capita GDP. According to the panel estimation results from OLS estimator, the relationship between emission and per capita GDP is inverse N-shaped. However, dust-GDP relation can be considered as inverted U-shaped for the reason that per capita GDP of left turning point is too small (314 Yuan)

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