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Environmental Kuznets Curves in the People’s Republic of China: Turning Points and Regional Differences

Author

Listed:
  • Jiang, Yi

    (Asian Development Bank)

  • Lin, Tun

    (Asian Development Bank)

  • Zhuang, Juzhong

    (Asian Development Bank)

Abstract
This paper examines the relationship between economic growth and environmental sustainability in the People’s Republic of China by empirically estimating environmental Kuznets curve (EKC) models using provincial-level panel data from 1985 to 2005. The results show that there exists an inverted-U shaped relationship as hypothesized by the EKC model between per capita income and per capita emissions (or discharges) in the cases of waste gas from fuel burning and waste water, with a turning point at per capita gross domestic product of $12,903 and $3,226, respectively, in 2005 purchasing power parity terms. This relationship does not hold in the case of waste gas from production or solid waste. The estimation results from the model allowing regionspecific slope coefficients show that the EKCs of the more developed coastal region have a flatter rising portion with turning points occurring at a higher income level than those of the less developed central and western regions. The paper argues that this may reflect technology diffusion and leapfrogging and institution imitation across regions at different stages of development. Policy implications of these findings are discussed.

Suggested Citation

  • Jiang, Yi & Lin, Tun & Zhuang, Juzhong, 2008. "Environmental Kuznets Curves in the People’s Republic of China: Turning Points and Regional Differences," ADB Economics Working Paper Series 141, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0141
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    References listed on IDEAS

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    Cited by:

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    3. Azam, Muhammad & Khan, Abdul Qayyum, 2016. "Testing the Environmental Kuznets Curve hypothesis: A comparative empirical study for low, lower middle, upper middle and high income countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 556-567.
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    5. Wenhao Song & Chunhui Ye & Yuheng Liu & Weisong Cheng, 2021. "Do China’s Urban–Environmental Quality and Economic Growth Conform to the Environmental Kuznets Curve?," IJERPH, MDPI, vol. 18(24), pages 1-15, December.
    6. Dai, Li & Xiong, Yuyu, 2023. "Does the green finance development and renewable energy affect the economic recovery in Asian economies," Renewable Energy, Elsevier, vol. 216(C).
    7. Du, Limin & Wei, Chu & Cai, Shenghua, 2012. "Economic development and carbon dioxide emissions in China: Provincial panel data analysis," China Economic Review, Elsevier, vol. 23(2), pages 371-384.
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    More about this item

    Keywords

    development; economic growth; Environmental Kuznets Curve; panel data; sustainability;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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