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China's industrial SO2 emissions and its economic determinants: EKC's reduced vs. structural model and the role of international trade

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  • HE, JIE

Abstract

This paper discusses the validity of the Environmental Kuznets Curve (EKC) hypothesis for the case of China's industrial SO 2 emissions: both its reduced form and structural model are considered. The EKC curve for China's per capita industrial SO 2 emissions predicts the turning point at 10,000 yuan (3,085 US$, Purchasing Power Parity (PPP)). However, given China's fast population expansion, the decreasing trend in per capita emissions may well not be enough to bring about an immediate reduction in terms of total industrial SO 2 emissions and emissions density. Using the structural EKC model makes it possible to reveal how various factors contribute to the industrial SO 2 emissions density – namely, the three commonly known structural determinants and the marginal impact of international trade. International trade proves to have a two-fold impact: a significantly negative direct one and an indirect one that is dependent on the current capital–labour abundance ratio and on the income level of each province.

Suggested Citation

  • He, Jie, 2009. "China's industrial SO2 emissions and its economic determinants: EKC's reduced vs. structural model and the role of international trade," Environment and Development Economics, Cambridge University Press, vol. 14(02), pages 227-262, April.
  • Handle: RePEc:cup:endeec:v:14:y:2009:i:02:p:227-262_00
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    Cited by:

    1. David I. Stern & Donglan Zha, 2016. "Economic growth and particulate pollution concentrations in China," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(3), pages 327-338, July.
    2. He, Jie, 2010. "What is the role of openness for China's aggregate industrial SO2 emission?: A structural analysis based on the Divisia decomposition method," Ecological Economics, Elsevier, vol. 69(4), pages 868-886, February.
    3. repec:spr:anresc:v:58:y:2017:i:2:d:10.1007_s00168-016-0783-4 is not listed on IDEAS
    4. Shahbaz, Muhammad & Shahzad, Syed Jawad Hussain & Kumar, Mantu, 2017. "Is Globalization Detrimental to CO2 Emissions in Japan? New Threshold Analysis," MPRA Paper 82413, University Library of Munich, Germany, revised 03 Nov 2017.
    5. Muhammad Shahbaz & Saleheen Khan & Amjad Ali & Mita Bhattacharya, 2017. "The Impact Of Globalization On Co2 Emissions In China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(04), pages 929-957, September.
    6. Tanger, Shaun M. & Zeng, Peng & Morse, Wayde & Laband, David N., 2011. "Macroeconomic conditions in the U.S. and congressional voting on environmental policy: 1970-2008," Ecological Economics, Elsevier, vol. 70(6), pages 1109-1120, April.
    7. Huan Zhang, 2016. "Exploring the impact of environmental regulation on economic growth, energy use, and CO2 emissions nexus in China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 213-231, October.
    8. Lee, Sanghoon & Oh, Dae-Won, 2015. "Economic growth and the environment in China: Empirical evidence using prefecture level data," China Economic Review, Elsevier, vol. 36(C), pages 73-85.
    9. repec:eee:enepol:v:113:y:2018:i:c:p:20-27 is not listed on IDEAS
    10. Shahbaz, Muhammad & Mutascu, Mihai & Azim, Parvez, 2013. "Environmental Kuznets curve in Romania and the role of energy consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 165-173.
    11. Perrings, Charles, 2014. "Environment and development economics 20 years on," Environment and Development Economics, Cambridge University Press, vol. 19(03), pages 333-366, June.
    12. Muhammad, Shahbaz & Faridul, Islam & Muhammad Sabihuddin, Butt, 2011. "Financial Development, Energy Consumption and CO2 Emissions: Evidence from ARDL Approach for Pakistan," MPRA Paper 30138, University Library of Munich, Germany, revised 07 Apr 2011.

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