Theoretical Analysis and Econometric Testing on Relationship of Environmental Pollution and Economic Growth

  • 1. Northeast Institute of Geography and Agroecology, Chinese Academy of Sciences, Changchun, Jilin 130012;
    2. Graduate School of Chinese Academy of Sciences, Beijing, 100049;
    3. Quantitative Research Center of Economics, Jilin University, Changchun, Jilin 130012

Received date: 2006-03-18

  Revised date: 2006-09-26

  Online published: 2007-03-20


In this paper,we devote our attention to the relationship between environmental pollution and economic growth in theory and econometrics.To throw some light on them,we first build an infinite time horizon inter-temporal consumption choice problem on a simple environment-teconomy model to deduce the long-run and short-trun relationships between them.Next,the general analysis with the methods of cointegration test and granger causality test is used to test the long-trun and short-run relationships in econometrics.Hence,these conclusions can provide some bases of theory and technology for empirical studies. Based on the EKC hypothesis,we use annual data ranged from 1960 to 2000 in China to investigate the long-run and short-run relationships between environmental pollution and economic growth.The results show that there is a long-run cointegrating relationship between per capita CO2 emission and per capita GDP which appears an inverse U-shaped EKC relation.In short-run dynamics,per capita GDP in-directionally Granger causes per capita CO2 emission,but no evidence supporting the response of per capita GDP to per capita CO2 emission.

Cite this article

SONG Tao, ZHENG Ting-Guo, TONG Lian-Jun . Theoretical Analysis and Econometric Testing on Relationship of Environmental Pollution and Economic Growth[J]. SCIENTIA GEOGRAPHICA SINICA, 2007 , 27(2) : 156 -162 . DOI: 10.13249/j.cnki.sgs.2007.02.156


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