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What is the role of economic growth and openness for China’s environment? An analysis based on Divisia decomposition method from the regional angle

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  • Jie He

    () (GREDI, Département d'économique, Université de Sherbrooke)

Abstract

Observing the weakness in the previous structural analyses on Environmental Kuznets Curve (EKC) formation, in this paper, author deepens the analysis into the detailed data of production and SO2 emission intensity of the 29 industrial sectors (occupying over 98% of the total industrial production) in each Chinese province during 1991-2001. With the aid of Divisia Index Decomposition method, the variation of the provincial-level industrial SO2 emission with regard to the original level of 1990 is decomposed into the contribution from its three determinants: the variations in production scale, composition transformation and technique progress. The following analyses employ the decomposition results to further interrogate the potential links of these region-specific environmental impacts with economic growth and commercial openness in each province.

Suggested Citation

  • Jie He, 2006. "What is the role of economic growth and openness for China’s environment? An analysis based on Divisia decomposition method from the regional angle," Cahiers de recherche 06-26, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
  • Handle: RePEc:shr:wpaper:06-26
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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-0626.pdf
    File Function: First version, 2006
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    Keywords

    EKC; trade; pollution; China; Decomposition; region.;

    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 Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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