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Economic Determinants for China’s Industrial SO2 Emission: Reduced vs. Structural form and the role of international trade

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Author Info
Jie He () (GREDI, Département d'économique, Université de Sherbrooke)

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Abstract

This paper discusses the validity of the Environmental Kuznets Curve hypothesis for the case of China’s industrial SO2 emission through both reduced and structural model. The estimated Chinaspecific EKC curve for per capital industrial SO2 emission predicts the turning point of 9000 yuan (2750 USD, PPP). However, given China’s fast population expansion speed, the decreasing trend in the per capita emission will not bring an immediate reduction in total industrial SO2 emission. Our structural EKC model succeeds in decomposing industrial SO2 emission density into the contribution from its three famous structural determinants and a marginal impact from international trade. The latter is actually composed of a significantly negative direct impact and indirect ones going through the composition effect, which further depends on the current capital/labour abundance ratio and the actual income level of a province.

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File URL: http://pages.usherbrooke.ca/gredi/wpapers/GREDI-0627.pdf
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File Function: First version, 2006
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Publisher Info
Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 06-27.

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Length: 35 pages
Date of creation: 2006
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Handle: RePEc:shr:wpaper:06-27

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Related research
Keywords: : China EKC international trade SO2 emission decomposition pollution haven.

Find related papers by JEL classification:
Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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