Abstract
This study tests the Environmental Kuznets curve (EKC) hypothesis for the Weihe River basin using the land footprint as a proxy for environmental degradation. To investigate the impact of ecological measures on the EKC, we set up a comparison experiment using “ecological measures” as a single variable and then compared the EKC of the treatment and control groups using parametric and semi-parametric estimation methods. Fixed effects studies suggest that the treatment group and control group both have an inverted N-shaped cubic EKC. Following the validity of semiparametric estimation, the economic development and land footprint of the treatment group exhibit an inverted U-shaped EKC; while a monotonically increasing relationship is found for the control group, where invalidates the EKC hypothesis. The results indicate that ecological measures implemented in the cities of Weihe River basin can indeed influence the shape of the EKC and make the decoupling point occur sooner. As a result, Natural Capital Investment in China has helped to decouple economic progress from environmental concerns in recent years.
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