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Economic growth and the environment in China: Empirical evidence using prefecture level data

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  • Lee, Sanghoon
  • Oh, Dae-Won

Abstract

This paper addresses the issue of the relationship between economic growth and environmental quality in China. The main hypothesis to be examined in the study is the environmental Kuznets curve hypothesis, which postulates an inverse U-shaped relationship between pollutions and income. The empirical analysis uses prefecture level panel data of China over the period 2003–2010, and employs fixed effects model and a sample split method. The empirical results tend to confirm the inverse U-shaped relationship as well as the N-shaped relationship between income and pollution.

Suggested Citation

  • Lee, Sanghoon & Oh, Dae-Won, 2015. "Economic growth and the environment in China: Empirical evidence using prefecture level data," China Economic Review, Elsevier, vol. 36(C), pages 73-85.
    • Handle: RePEc:eee:chieco:v:36:y:2015:i:c:p:73-85
    DOI: 10.1016/j.chieco.2015.08.009
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    More about this item

    Keywords

    Environmental Kuznets curve; Environment; Economic growth; China; Panel data;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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