Urbanization, Public Finance and Carbon Intensity – Based on Panel Data and Error Correction Model

Shih-Feng Tsai

doi:10.5539/jsd.v9n1p23

Abstract

<span lang="EN-US">Aiming at six big emerging economies in the world, namely, China, United States, United Kingdom, Germany, France and Japan, this paper analyzes their carbon emission conditions based on the data of carbon emission, energy consumption and economic development during 1970—2008 from the statistics in the World Development Index Database (WDI) of the World Bank, and carries out empirical analyses based on theories &amp; policies and driving factors of their low carbon economy. It is found that energy intensity, economic growth and urbanization progress exert more remarkable influences on carbon intensity, and the effect of carbon emission reduction depending on government fiancé is not sustainable. Thus, this paper is intended to explain that China needs more actively promoting green sustainable towns with its sustainable development, and developing urban low carbon industries and buildings for more civilized ecological towns.</span>

Highlights

Since the reform and opening-up policy in 1978, China boasts its development at an annual growth rate of 9.8%
Aiming at six big emerging economies in the world, namely, China, United States, United Kingdom, Germany, France and Japan, this paper analyzes their carbon emission conditions based on the data of carbon emission, energy consumption and economic development during 1970—2008 from the statistics in the World Development Index Database (WDI) of the World Bank, and carries out empirical analyses based on theories & policies and driving factors of their low carbon economy
It is found that energy intensity, economic growth and urbanization progress exert more remarkable influences on carbon intensity, and the effect of carbon emission reduction depending on government fiancé is not sustainable

Summary

Introduction

Since the reform and opening-up policy in 1978, China boasts its development at an annual growth rate of 9.8%. There are quite a few of empirical literatures about relations of environment quality and economic development & income level, written by following scholars: Hettige, Lucas and Wheeler (1992), Holtz-Eakin and Selden (1992), Selden and Song (1994), Cropper and Griffiths (1994), and Vincent (1997) They found that the indexes related to environment pollution were not according with the EKC U-converted hypothesis. Within the existing researches and discussions, this paper focuses on six big emerging economies in the world, namely, China, United States, United Kingdom, France and Japan, and carries out empirical analyses their carbon intensity and urbanization, financial expenditure and other driving factors based on the data of carbon emission, energy consumption and economic development during 1970—2008 from the statistics in the World Development Index Database (WDI) of the World Bank What is on earth the influence of urbanization on carbon intensity? Within the existing researches and discussions, this paper focuses on six big emerging economies in the world, namely, China, United States, United Kingdom, France and Japan, and carries out empirical analyses their carbon intensity and urbanization, financial expenditure and other driving factors based on the data of carbon emission, energy consumption and economic development during 1970—2008 from the statistics in the World Development Index Database (WDI) of the World Bank

Data Analysis and Research Method

All Nations’ Regression Results

Comparative Analysis of Carbon Intensity Driving Factors for Six Nations

Findings

Conclusions