Achieving Harmony between the Economy and the Environment

Abstract

Rather than attempting to balance the environment with the economy (i.e., a zero-sum game), a theoretically better long-term approach would be to achieve harmonious development in which both the environment and the economy benefit. To provide insights into this suggestion, we analyzed the relationships between environmental quality and economic development in China through a threshold regression model based on panel data from 292 cities from 2007 to 2018. We found that the relationship between environmental quality and economic development represented a negative interaction before or after the relationship passed through a zone of temporary balance, but that attaining a high urbanization level (in this case study, 81.0%) could improve the efficiency and capital utilization rate of environmental governance and change the impact from negative to positive, thereby achieving harmonious development rather than a zero-sum game. The government should therefore take measures to increase urbanization so as to achieve more harmonious development of the environment and economy (i.e., a win–win situation).