Growth and environmental pollution: Empirical evidence from China. Journal of Chinese Economic and Foreign Trade Studies 4(3): 144-157

Growth and environmental pollution: Empirical evidence from China.  Journal of Chinese Economic and Foreign Trade Studies 4(3): 144-157 (EconLit Listed). [Outstanding Paper Award Winner at the Emerald Literati Network Awards for Excellence 2012, Emerald]. In common with Ν. Τzeremes (2011).

The rapid economic growth of China has attracted the attention of economists, researchers and politicians. China is one of the largest economies in the world with its GDP rising on an average above 9%. This economic growth is considered responsible for environmental degradation, which appears to be the most significant problem that economic growth causes.  Using time series data, this paper investigates China’s carbon emissions during 1960-2006, with particular focus on the direct role of growth and in connection to trade and the value added by various sectors like agriculture, industry and services.  Our empirical results indicate the presence of an inverted U-shaped curve between CO2 emissions and growth represented by the GDP per capita. Trade seems to be an important determinant in this relationship. Such empirical findings provide evidence for policy implications regarding the role of growth, trade and the value added by the various sectors of the economy on environmental degradation.

JEL classification codes: C22; C51; O10; Q56