Abstract
We apply a two pronged approach to analyze the presence of Environmental Kuznets Curve, EKC, in three types of emissions in the People’s Republic of China from 1994 to 2014: a structural breakpoint analysis and a model based test. We apply it to PM2.5, industrial waste and domestic water pollution time series, and find evidence of EKC in all three types of emissions that require appropriate policy.
Highlights
This paper examines the relationship between economic growth and environmental sustainability in the People’s Republic of China, PRC, by empirically estimating environmental Kuznets curve (EKC) models using national data from 1994 to 2014
We examine the relationship between economic growth and environmental sustainability in the PRC by testing the presence of EKC in three types of emissions from 1994 to 2014: a structural breakpoint analysis of PM2.5, IW and DP time series; and a model based test
In regards to IW and DP, the model based test, Equation (3.1), indicates that DP has an upward trend albeit with a very small cubic coefficient so the increase is reversible if policy is appropriate
Summary
This paper examines the relationship between economic growth and environmental sustainability in the People’s Republic of China, PRC, by empirically estimating environmental Kuznets curve (EKC) models using national data from 1994 to 2014. The results show that there exists an inverted-U shaped relationship as hypothesized by the EKC model between per capita GDP and per capita emissions (or discharges) of domestic water pollution, PM2.5 microparticle emissions and industrial waste. We find that PM2.5 has an N shape curve with two breakpoints ( found in literature as turning points, structural breakpoints, regime switches), SBs, at 9786.425 Yuan and 19880.32 Yuan. The EKC test applied to an interpolated PM2.5 series indicates a Normal N type curve. Industrial waste, IW, has what could become a two breakpoint EKC. The first breakpoint happens at 35300.37 Yuan with a pronounced change in slope going
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