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Assessment of the Interactions between Economic Growth and Industrial Wastewater Discharges Using Co-integration Analysis: A Case Study for China’s Hunan Province

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  • Qiang Xiao

    (Chongqing University of Arts and Sciences, Chongqing 402160, China
    State Key Laboratory of Urban and Regional Ecology, Center for Eco-Environmental Sciences, Chinese Academy of Sciences, Beijing 100085, China)

  • Yang Gao

    (Key Laboratory of Water Cycle and Related Land Surface Processes, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China)

  • Dan Hu

    (State Key Laboratory of Urban and Regional Ecology, Center for Eco-Environmental Sciences, Chinese Academy of Sciences, Beijing 100085, China)

  • Hong Tan

    (Chongqing University of Arts and Sciences, Chongqing 402160, China)

  • Tianxiang Wang

    (Chongqing University of Arts and Sciences, Chongqing 402160, China)

Abstract

We have investigated the interactions between economic growth and industrial wastewater discharge from 1978 to 2007 in China's Hunan Province using co-integration theory and an error-correction model. Two main economic growth indicators and four representative industrial wastewater pollutants were selected to demonstrate the interaction mechanism. We found a long-term equilibrium relationship between economic growth and the discharge of industrial pollutants in wastewater between 1978 and 2007 in Hunan Province. The error-correction mechanism prevented the variable expansion for long-term relationship at quantity and scale, and the size of the error-correction parameters reflected short-term adjustments that deviate from the long-term equilibrium. When economic growth changes within a short term, the discharge of pollutants will constrain growth because the values of the parameters in the short-term equation are smaller than those in the long-term co-integrated regression equation, indicating that a remarkable long-term influence of economic growth on the discharge of industrial wastewater pollutants and that increasing pollutant discharge constrained economic growth. Economic growth is the main driving factor that affects the discharge of industrial wastewater pollutants in Hunan Province. On the other hand, the discharge constrains economic growth by producing external pressure on growth, although this feedback mechanism has a lag effect. Economic growth plays an important role in explaining the predicted decomposition of the variance in the discharge of industrial wastewater pollutants, but this discharge contributes less to predictions of the variations in economic growth.

Suggested Citation

  • Qiang Xiao & Yang Gao & Dan Hu & Hong Tan & Tianxiang Wang, 2011. "Assessment of the Interactions between Economic Growth and Industrial Wastewater Discharges Using Co-integration Analysis: A Case Study for China’s Hunan Province," IJERPH, MDPI, vol. 8(7), pages 1-14, July.
    • Handle: RePEc:gam:jijerp:v:8:y:2011:i:7:p:2937-2950:d:13176
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