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Dynamics of environmental quality and economic development: the regional experience from Yangtze River Delta of China

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  • Jingjing Zhang
  • Partha Gangopadhyay

Abstract

This article investigates the dynamic relationship between economic progress and environmental quality at a regional level. An important economic intuition in this context is that environmental degradation will be limited by human behaviour if costs and benefits of such degradation are local since economic agents will then be incentivized to choose appropriate corrective action. Therefore, we note the likelihood that regional economic development can help regions 'grow out of' environmental problems. Using a new data set from Yangtze River Delta of China, we find a strong confirmation of the intuition that human can and will resolve the environmental problem by altering the damaging behaviour of economic agents. A very interesting finding of this study is that the relationship between environmental quality and economic progress measured by per capita income can display a wave-like function in the case of water pollution, as opposed to the much dramatized environmental Kuznets curve, with significant policy implications.

Suggested Citation

  • Jingjing Zhang & Partha Gangopadhyay, 2015. "Dynamics of environmental quality and economic development: the regional experience from Yangtze River Delta of China," Applied Economics, Taylor & Francis Journals, vol. 47(29), pages 3113-3123, June.
    • Handle: RePEc:taf:applec:v:47:y:2015:i:29:p:3113-3123
    DOI: 10.1080/00036846.2015.1011324
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    References listed on IDEAS

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    1. Farhani, Sahbi & Shahbaz, Muhammad & AROURI, Mohamed El Hedi, 2013. "Panel analysis of CO2 emissions, GDP, energy consumption, trade openness and urbanization for MENA countries," MPRA Paper 49258, University Library of Munich, Germany, revised 20 Aug 2013.
    2. Shafik, Nemat & Bandyopadhyay, Sushenjit, 1992. "Economic growth and environmental quality : time series and cross-country evidence," Policy Research Working Paper Series 904, The World Bank.
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    Cited by:

    1. Haider Mahmood & Maham Furqan & Muhammad Shahid Hassan & Soumen Rej, 2023. "The Environmental Kuznets Curve (EKC) Hypothesis in China: A Review," Sustainability, MDPI, vol. 15(7), pages 1-32, April.
    2. Chen, Hong & Singh, Baljeet, 2018. "Impacts of Disaggregate Energy Prices on Disaggregate Energy CO2 Emissions: Evidence from China," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 8(2), pages 126-143.
    3. Partha Gangopadhyay & Baljeet Singh, 2017. "CFCs and Rising Global Temperature During 1969-1998: A Time Series Analysis," Modern Applied Science, Canadian Center of Science and Education, vol. 11(8), pages 1-68, August.
    4. Zhengda Li & Wanping Yang & Chengjun Wang & Yuesheng Zhang & Xiaoling Yuan, 2019. "Guided High-Quality Development, Resources, and Environmental Forcing in China’s Green Development," Sustainability, MDPI, vol. 11(7), pages 1-18, April.
    5. Junjie Li & Xiangbin Peng & Ruomei Tang & Jing Geng & Zipeng Zhang & Dong Xu & Tingting Bai, 2024. "Spatial and Temporal Variation Characteristics of Ecological Environment Quality in China from 2002 to 2019 and Influencing Factors," Land, MDPI, vol. 13(1), pages 1-24, January.
    6. Apergis, Nicholas & Gangopadhyay, Partha, 2020. "The asymmetric relationships between pollution, energy use and oil prices in Vietnam: Some behavioural implications for energy policy-making," Energy Policy, Elsevier, vol. 140(C).

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