Dynamic Relationship between Air Pollution and Economic Growth in Taiwan Deduced from Mathematical Models

Abstract

AbstractAir pollution resulting from the rapid development of industries has become a serious environmental issue in Taiwan, although the blooming industrial activities have resulted in rapid economic growth. The consequences of rapid economic growth are reflected in air pollution. A statistical model and grey relational grade system are used to quantify the distribution of various air pollutants such as particulate matter 10, sulfur dioxide, nitrogen dioxide, carbon monoxide, and ozone from 2008 to 2017. It is found that the gross domestic product (GDP) and air pollution display a positive correlation, whereby the p‐value is statistically significant at 5% confidence interval and the correlation coefficients between GDP and air pollution are positive at 0.056 and 6.59, respectively. Moreover, the relationship between air pollution and GDP displays similar trend for both seasonal and annual data. The empirical results of this study are robust during the northeast monsoon season because the values are found to be slightly higher in such season. Therefore, it can be suggested that the GDP growth in Taiwan is significantly related to air pollution and the only optimal mechanism to avoid drastic climate change is to implement a balance between GDP growth and air pollution control.