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Revisiting the environmental Kuznets curve in China: A spatial dynamic panel data approach

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  • Chang, Hsuan-Yu
  • Wang, Wei
  • Yu, Jihai

Abstract

With rapid economic growth, air pollution is becoming an important issue in China. This paper investigates the relationship between air pollution and economic growth using an augmented green Solow model. Using the prefecture-level data of 284 cities in China during the period from 2004 through 2015, we investigate the environmental Kuznets curve (EKC) using spatial dynamic panel data models. Our model suggests an inverted U-shaped EKC, and the peak will come earlier due to the spillover effect of abatement technology. The shape of the EKC is supported by empirical evidence and is robust when we group cities by income level, region, and secondary industry. We also show that the shape of the EKC is sensitive to the model specification of dynamic and spatial features.

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  • Chang, Hsuan-Yu & Wang, Wei & Yu, Jihai, 2021. "Revisiting the environmental Kuznets curve in China: A spatial dynamic panel data approach," Energy Economics, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:eneeco:v:104:y:2021:i:c:s0140988321004680
    DOI: 10.1016/j.eneco.2021.105600
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    5. Taguchi, Hiroyuki, 2024. "Air pollutions and its control governance in Chinese provinces in post-COVID-19 era: panel estimations of provincial environmental Kuznets curves," MPRA Paper 121488, University Library of Munich, Germany.
    6. Xin Nie & Jianxian Wu & Han Wang & Weijuan Li & Chengdao Huang & Lihua Li, 2022. "Contributing to carbon peak: Estimating the causal impact of eco‐industrial parks on low‐carbon development in China," Journal of Industrial Ecology, Yale University, vol. 26(4), pages 1578-1593, August.
    7. Liu, Fengqi & Kang, Yuxin & Guo, Kun, 2022. "Is electricity consumption of Chinese counties decoupled from carbon emissions? A study based on Tapio decoupling index," Energy, Elsevier, vol. 251(C).
    8. Jaeger, William K. & Kolpin, Van & Siegel, Ryan, 2023. "The environmental Kuznets curve reconsidered," Energy Economics, Elsevier, vol. 120(C).
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    More about this item

    Keywords

    Environmental Kuznets curve; PM 2.5; Green Solow model; Spatial panel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • 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 Accounts and Accounting; Environmental Equity; Population Growth

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