Abstract
This study investigates the relationship among pollutant emissions, energy consumption and economic development in China during the period 1982–2007 by using a one-step GMM-system model under a multivariable panel VAR framework, controlling for capital stock and labor force. Regarding the data for all 28 provinces as a whole, we find that there is a unidirectional positive relationship running from pollutant emission to economic development and a unidirectional negative relationship between pollutant emission and energy consumption. Based on traditional economic planning, the panel data of 28 provinces are divided into two cross-province groups. It is discovered that in the eastern coastal region of China, there is only a unidirectional positive causal relationship leading from economic development to pollutant emission; while in the central and western regions, there are the unidirectional Granger causal relationships between pollutant emission and energy consumption, as well as between pollutant emissio...
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