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Determinants of Environmental Pollution in Provincial Areas in China

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Environmental pollution has become an issue in China following rapid economic development, especially in transitioning parts of China. The government has made environmental protection part of the national agenda. A knowledge of what factors affect pollution will help make policy. The relationship between environmental pollution and economic growth has been widely studied. Most studies have tried to explain the relationship between environmental pollution and economic growth in China using just one province or national level data as the target of study. This paper investigated the relationship between urbanization level and air pollution based on province-level panel data over the time period from 2007 to 2014 in China. Two measures of pollution emissions are used in the empirical study: SO2 and soot. Most researchers link the relationship between economic growth and environmental pollution to the Environmental Kuznets Curve (EKC) that indicates an inverted U-shaped relationship. This study investigates the relationship between environmental pollution and development, as well as trade openness, urbanization level, energy consumption, expenditure on environmental protection, secondary industry, and local share of financial revenue by examining data for 30 provinces (covering all mainland province-level administrative units except Tibet) over eight years. The combination of cross-sectional and time series data allows for richer econometric model specifications and more accurate conclusions. The analysis found an inverted U-shaped relationship between economic development and air pollution is strongly verified in the case of SO2, supporting the EKC hypothesis, while soot had a U-shaped relationship. Urbanization level also had opposite relationships, negative for SO2 and positive for soot. Trade openness was associated with decreasing emissions for both pollutants. Electricity consumption was associated with increased emissions. Secondary industry had an unexpected effect of relating to decreased emissions of soot. Environmental expenditure was associated with decreases in both pollutants. Financial resource autonomy had a strong relationship with rising SO2 emissions but not with soot. There appears to be different processes involved in the two pollutants in spite of a number of common sources. The Chinese government at all levels has strong scope for addressing emissions of both pollutants investigated in the study.

Abstract

Environmental pollution has become an issue in China following rapid economic development, especially in transitioning parts of China. The government has made environmental protection part of the national agenda. A knowledge of what factors affect pollution will help make policy. The relationship between environmental pollution and economic growth has been widely studied. Most studies have tried to explain the relationship between environmental pollution and economic growth in China using just one province or national level data as the target of study. This paper investigated the relationship between urbanization level and air pollution based on province-level panel data over the time period from 2007 to 2014 in China. Two measures of pollution emissions are used in the empirical study: SO2 and soot. Most researchers link the relationship between economic growth and environmental pollution to the Environmental Kuznets Curve (EKC) that indicates an inverted U-shaped relationship. This study investigates the relationship between environmental pollution and development, as well as trade openness, urbanization level, energy consumption, expenditure on environmental protection, secondary industry, and local share of financial revenue by examining data for 30 provinces (covering all mainland province-level administrative units except Tibet) over eight years. The combination of cross-sectional and time series data allows for richer econometric model specifications and more accurate conclusions. The analysis found an inverted U-shaped relationship between economic development and air pollution is strongly verified in the case of SO2, supporting the EKC hypothesis, while soot had a U-shaped relationship. Urbanization level also had opposite relationships, negative for SO2 and positive for soot. Trade openness was associated with decreasing emissions for both pollutants. Electricity consumption was associated with increased emissions. Secondary industry had an unexpected effect of relating to decreased emissions of soot. Environmental expenditure was associated with decreases in both pollutants. Financial resource autonomy had a strong relationship with rising SO2 emissions but not with soot. There appears to be different processes involved in the two pollutants in spite of a number of common sources. The Chinese government at all levels has strong scope for addressing emissions of both pollutants investigated in the study.

참고문헌 (45)

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