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The empirical relationship between openness and environmental pollution in China


  • Ning Chang


By using a vector autoregression (VAR) model, this paper examines the relationship between openness and environmental degradation in China. The empirical results suggest that, during 1981--2008, the long-run equilibrium relation between China's foreign trade, foreign direct investment (FDI) and industrial pollutants can be positive or negative, depending on the pollutants concerned. Therefore it is hard to say whether openness is good or bad for the environment in China. Moreover, a short-run causality test reveals that China's exports expansion leads to an increase in sulphur dioxide (SO 2 ) emissions, while imports and FDI enlargement result in the growth of solid waste generation. On the other hand, China's control of SO 2 emissions discourages its exports, whereas control of wastewater discharge encourages its imports.

Suggested Citation

  • Ning Chang, 2012. "The empirical relationship between openness and environmental pollution in China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 55(6), pages 783-796, August.
  • Handle: RePEc:taf:jenpmg:v:55:y:2012:i:6:p:783-796 DOI: 10.1080/09640568.2011.628087

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    References listed on IDEAS

    1. Frances Ruane & Xiaoheng Zhang, 2007. "Location Choices of the Pharmaceutical Industry in Europe after 1992," The Institute for International Integration Studies Discussion Paper Series iiisdp220, IIIS.
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    Cited by:

    1. Shahbaz, Muhammad & Mallick, Hrushikesh & Kumar, Mantu & Loganathan, Nanthakumar, 2015. "Does Globalization Impede Environmental Quality in India?," MPRA Paper 67285, University Library of Munich, Germany, revised 15 Oct 2015.
    2. repec:eee:apmaco:v:273:y:2016:i:c:p:290-307 is not listed on IDEAS
    3. Shahbaz, Muhammad & Syed, Jawad & Kumar, Mantu & Hammoudeh, Shawkat, 2017. "Does globalization worsen environmental quality in developed economies?," MPRA Paper 80055, University Library of Munich, Germany, revised 06 Jul 2017.

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