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

Abstract

Series is a forum for stimulating discussion and eliciting feedback on ongoing and recently completed research and policy studies undertaken by the Asian Development Bank (ADB) staff, consultants, or resource persons. The series deals with key economic and development problems, particularly those facing the Asia and Pacific region; as well as conceptual, analytical, or methodological issues relating to project/program economic analysis, and statistical data and measurement. The series aims to enhance the knowledge on Asia's development and policy challenges; strengthen analytical rigor and quality of ADB's country partnership strategies, and its subregional and country operations; and improve the quality and availability of statistical data and development indicators for monitoring development effectiveness.

Testing the Environmental Kuznets Curve hypothesis: A comparative empirical study for low, lower middle, upper middle and high income countries

“…The empirical results of the present study support the EKC hypothesis in low income country (Tanzania) and in lower middle income country (Guatemala), where in the initial stage of growth, environmental degradation increases and starts improving when the growth process reaches a certain level. These results are in line of the prior findings of Focacci [26], Jiang et al [37], Agras and Chapman [1], and He and Richard [33]. However, the results of economic growth for a high income country (USA) and upper middle income country (Guatemala) does not support EKC hypothesis.…”

“…Focacci [26] finds no evidence for the existence of the inverted U-shaped EKC for Brazil, India, China and South Africa during 1975-1997, while except for India over the period 1970-1997. The study of Jiang et al [37] reveals that EKC hypothesis does not hold in the case of wasteful gases from production or solid waste in China using provincial-level panel data during 1985-2005.…”

“…Jiang et al [37] observes that there exists an inverted U shaped linkage as assumed by the EKC model between income per capita and per capita emissions (or discharges) in the cases of waste gas from fuel burning and waste water in the People's Republic of China using provinciallevel panel data during 1985-2005. The study of Jalil and Mahmud [39] suggests a quadratic relationship between income and CO 2 emission, which supports the EKC relationship for China during 1975-2005.…”

Testing Environmental Kuznets Curve hypothesis in Asian countries

“…Given the countries' rapid pace of growth, their performance in mitigating environmental degradation inevitably attracts attention. In addition, these countries are characterized by substantial differences across their industrial structure and their level of urbanization, which both are expected to further deteriorate the relationship between their economic growth levels and the pollutant emissions, jeopardizing their substantial economic process (Jiang et al, 2008).…”

Environmental Pollution and Economic Growth in China: A Test of the Environmental Kuznets Curve

“…Auffhammer and Carson [10] find the EKC relationship between (log) per capita waste gas emissions and (log) total GDP in a two-way fixed effects model specification. Jiang et al [11] show that there exists an inverted-U shaped relationship between per capita income and per capita emissions (or discharges) of wastegas 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 powerparity terms. Peng and Xiaohong [12] show that EKC curves in China do not have the traditional inverted U shape.…”