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Long-term Nexus of Industrial Pollution and Income in China

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  • Duo Qin

    (Queen Mary, University of London)

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Abstract

This study examines the long-run relationship between industrial pollution and income in China using provincial panel data. Four types of pollutants are modelled: waste water, solid wastes, soot and SO 2 emission. Two types of income effects are considered: the scale and growth effects. The study finds little evidence of inverse U shape curves as postulated by EKC models; pollutant emissions may go positively or negatively with income irrespective of income levels whereas certain sign of alleviation in pollutant concentration due to income growth is discernible; trade is found to be insignificant while the hazardous nature of pollutants appears to be an important factor for heterogeneity in the income effect estimates; the heterogeneity cautions us against simple panel model specification.

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Paper provided by Queen Mary, University of London, School of Economics and Finance in its series Working Papers with number 659.

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Date of creation: Feb 2010
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Handle: RePEc:qmw:qmwecw:wp659

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Keywords: Environmental Kuznets curve; Pollution; Economic growth; Trade; Heterogeneity;

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  1. Auffhammer, Maximilian & Carson, Richard T., 2007. "Forecasting the Path of China's CO2 Emissions Using Province Level Information," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt6d28j8rg, Department of Agricultural & Resource Economics, UC Berkeley.
  2. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
  3. Jianmin Tang & Weimin Wang, 2004. "Sources of aggregate labour productivity growth in Canada and the United States," Canadian Journal of Economics, Canadian Economics Association, vol. 37(2), pages 421-444, May.
  4. Matthieu Llorca & Andre Meunie, 2009. "SO2 emissions and the environmental Kuznets curve: the case of Chinese provinces," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 7(1), pages 1-16.
  5. Brian R. Copeland & M. Scott Taylor, 2003. "Trade, Growth and the Environment," NBER Working Papers 9823, National Bureau of Economic Research, Inc.
  6. William D. Nordhaus, 2000. "Productivity Growth and the New Economy," Cowles Foundation Discussion Papers 1284, Cowles Foundation for Research in Economics, Yale University.
  7. Jie He, 2011. "Pollution haven hypothesis and Environmental impacts of foreign direct investment: The Case of Industrial Emission of Sulfur Dioxide (SO2) in Chinese provinces," Working Papers halshs-00564699, HAL.
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