CO<sub>2</sub> Emissions and Regional Economic Growth: From the Perspective of Energy Consumption in China

Abstract

This paper examines the relationship between carbon emissions per capita and economic growth, carbon emissions intensity and economic growth from the perspective energy consumption for the period 1990-2008 respectively. Empirical results reveal that there exist long term cointegration between carbon emissions, regional economy growth and energy consumption in China. We apply dynamic and static panel data model to estimate the curved shape of the relationship between economy and carbon emissions while considering energy consumption respectively. We find that the curved shape is inverted “N” in static panel data model and dynamic panel data model, rather than inverted “U”. Finally this paper gives some suggestions that policy-makers can take different implementation of energy reduction and promote low carbon economic development.