Regional differences in nonlinear impacts of economic growth, export and FDI on air pollutants in China based on provincial panel data

Abstract

This study extends the STIRPAT model and uses China's provincial panel data to investigate regional differences in nonlinear effects of economic growth, export and FDI on air pollutants (SO2, NOx, and PM2.5) in China, which reveals that the nonlinear effect of economic growth on air pollutants mainly presented an “inverse-U″ or “inverse-N″ shape in eastern China, an “inverse-U″ or “increasing linear” shape in central China, and a “U” or “inverse-N″ shape in western China; the economic growth can decrease air pollutants in eastern China, whereas increase air pollutants in other regions. The result is not significantly consistent with EKC hypotheses. The effect of export on air pollutant emissions presented an “inverse-U″ or “increasing linear” shape in eastern China, an “increasing linear” or “inverse-N″ shape in central China, and an “inverse-U″ shape in western China; the export had a promoting effect on air pollutants, which indicates air pollutants transferred into China. The effect of FDI on air pollutants presented an “inverse-U″ shape in eastern China, and a “decreasing linear” shape in western China; the effect of FDI for central China was a “decreasing linear” shape on SO2, an “inverse-N″ shape on NOx, and an “inverse-U″ shape on PM2.5. The FDI reduced air pollutants in all regions, which contradicts to the “pollution haven” hypothesis. On the whole, the industrialization level and population size increased air pollutants, whereas the R&D reduced pollutants; the effects of population urbanization on air pollutants differed among regions. Some policy implications are put forth related to these empirical results.