Revisiting the environmental Kuznets curve in China: A spatial dynamic panel data approach

Hsuan-Yu Chang, Wei Wang and Jihai Yu

Energy Economics, 2021, vol. 104, issue C

Abstract: With rapid economic growth, air pollution is becoming an important issue in China. This paper investigates the relationship between air pollution and economic growth using an augmented green Solow model. Using the prefecture-level data of 284 cities in China during the period from 2004 through 2015, we investigate the environmental Kuznets curve (EKC) using spatial dynamic panel data models. Our model suggests an inverted U-shaped EKC, and the peak will come earlier due to the spillover effect of abatement technology. The shape of the EKC is supported by empirical evidence and is robust when we group cities by income level, region, and secondary industry. We also show that the shape of the EKC is sensitive to the model specification of dynamic and spatial features.

Keywords: Environmental Kuznets curve; PM 2.5; Green Solow model; Spatial panel data (search for similar items in EconPapers)
JEL-codes: C23 E13 O44 Q53 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:104:y:2021:i:c:s0140988321004680

DOI: 10.1016/j.eneco.2021.105600

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