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Does the environmental Kuznets curve hold for China? An empirical examination

In: Regulatory Reform in China and the EU

Author

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  • Binwei Gui
  • Michael G. Faure
  • Guangdong Xu

Abstract

In this chapter we test the applicability of the environmental Kuznets curve (EKC) to China and find that, at least for certain pollution indicators such as industrial waste gas and SO2, there is indeed an inverted U-shaped trend that conforms to the prediction of the EKC. In addition, we explore the role of institutions in shaping the connection between income and pollution in China, and find that institutional variables to a large extent account for the heterogeneity in EKC patterns in China’s different regions. Finally, we examine the channels through which institutions may influence pollution control and environmental quality, and find that institutional indicators affect the pollution level through the operational outcomes of pollution abatement measures rather than by affecting structural transformation or the volume of pollution abatement facilities.

Suggested Citation

  • Binwei Gui & Michael G. Faure & Guangdong Xu, 2017. "Does the environmental Kuznets curve hold for China? An empirical examination," Chapters, in: Stefan E. Weishaar & Niels Philipsen & Wenming Xu (ed.), Regulatory Reform in China and the EU, chapter 9, pages 200-234, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:17175_9
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