The coordination between China’s economic growth and environmental emission from the Environmental Kuznets Curve viewpoint

Abstract

The coordination between China’s economic growth and environmental emission is very important. Based on the Environmental Kuznets Curve theory, this paper uses panel smooth transition regression model to investigate the relationship between two representative emissions, i.e., CO2 and SO2, and economic growth. The empirical results show that there is no linear relationship between them. Inverted “U”-shaped relationship does not exist between carbon dioxide emissions and economic growth in China, but we find that the elasticity of the high-income areas is significantly less than that of the low-income areas. Environmental Kuznets Curve phenomenon exists between economic growth and sulfur dioxide emissions, and the elasticity in many developed provinces experienced from positive to negative status. This result verifies the international empirical evidence that CO2 does not decrease with economic growth and SO2 can generally meet the Environmental Kuznets Curve. This phenomenon indicates that the relationship between China’s economic development and environmental emission is consistent with international experience. Finally, some policy recommendations are given in the conclusion.