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Activity Number: 84 - Environmental Applications
Type: Contributed
Date/Time: Sunday, July 28, 2019 : 4:00 PM to 5:50 PM
Sponsor: Section on Statistics and the Environment
Abstract #304666 Presentation
Title: Revisiting Environmental Kuznets Curve in China: a Spatial Dynamic Panel Data Approach
Author(s): Hsuan-Yu CHANG* and Jihai Yu
Companies: Peking University, Guanghua School of Management and Peking University, Guanghua School of Management
Keywords: Environmental Kuznets curve; PM 2.5; Spatial panel data

With rapid economic growth, the air pollution is becoming an important issue in China. This paper investigates the relationship between pollution and economic growth of China by an augmented green Solow model to consider the spillover effect of technology on abatement. Using the prefecture-level data of 284 cities during the period from 2004 through 2015, we investigate the environmental Kuznets curve (EKC) using spatial dynamic panel data models. Our results suggest an inverted-U relationship between pollution level and income level in general. The shape of EKC is consistent when we group the cities by the income level, region, and secondary industry as the percentage to GDP. We also show that the shape of EKC might be sensitive to model specification. Based on our results, China’s average pollution level is predicted to pass the turning point of its EKC in 2035.

Authors who are presenting talks have a * after their name.

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