Growth and environmental pollution: empirical evidence from China
| DOI | https://doi.org/10.1108/17544401111178195 |
| Pages | 144-157 |
| Published date | 04 October 2011 |
| Date | 04 October 2011 |
| Author | George E. Halkos,Nickolaos G. Tzeremes |
| Subject Matter | Economics |
Growth and environmental
pollution: empirical evidence
from China
George E. Halkos
Operations Research Laboratory and Department of Economics,
University of Thessaly, Volos, Greece, and
Nickolaos G. Tzeremes
Department of Economics, University of Thessaly, Volos, Greece
Abstract
Purpose – 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 gross domestic
product (GDP) rising on an average above 9 percent. This economic growth is considered responsible
for environmental degradation, which appears to be the most significant problem that economic
growth causes. The purpose of this paper is to explore China’s carbon emissions during 1960-2006,
focusing on the role of growth, trade and the value added by various sectors.
Design/methodology/approach – 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 such as agriculture, industry and services.
Findings – The authors’ empirical results indicate the presence of an inverted U-shaped curve
between CO
2
emissions and growth represented by the GDP per capita. Trade seems to be an
important determinant in this relationship.
Practical implications – 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.
Originality/value – This study is the first effort to explore the associated implications of growth,
trade and the effect of the various sectors’ value added on environmental damage in an environmental
Kuznets curve framework.
Keywords China, Economicgrowth, Pollution, Trade, CO
2
emissions, Environmental Kuznets curve
Paper type Research paper
1. Introduction
China’s rapid economic growth has caught the attention of economists, researchers and
politicians around the world. China is one of the largest economies in the world and,
since its economic reform in 1978 gross domestic product (GDP) rises on an average
above 9 percent. According to Holtz (2008), in 2002 the US economy was eight times
bigger than the Chinese economy in terms of GDP, while in 2004 was only seven times
bigger. But he states that if we take into account the Penn World Tables, the
US economy is less than twice as bigger as the Chinese in terms of purchasing power.
If this rise in economic growth continues, then the Chinese economy will surpass the
US economy in terms of purchasing power in about five years, while in about 15 years
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1754-4408.htm
JEL classification – C22, C51, O10, Q56
JCEFTS
4,3
144
Journal of Chinese Economic and
Foreign Trade Studies
Vol. 4 No. 3, 2011
pp. 144-157
qEmerald Group Publishing Limited
1754-4408
DOI 10.1108/17544401111178195
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