Non-Linear Relationship between Economic Growth and CO 2 Emissions in China: An Empirical Study Based on Panel Smooth Transition Regression Models

Zheng-Xin Wang, Peng Hao and Pei-Yi Yao
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Zheng-Xin Wang: School of Economics, Zhejiang University of Finance & Economics, Hangzhou 310018, China
Peng Hao: School of Economics, Zhejiang University of Finance & Economics, Hangzhou 310018, China
Pei-Yi Yao: School of Economics, Zhejiang University of Finance & Economics, Hangzhou 310018, China

IJERPH, 2017, vol. 14, issue 12, 1-11

Abstract: The non-linear relationship between provincial economic growth and carbon emissions is investigated by using panel smooth transition regression (PSTR) models. The research indicates that, on the condition of separately taking Gross Domestic Product per capita (GDPpc), energy structure (Es), and urbanisation level (Ul) as transition variables, three models all reject the null hypothesis of a linear relationship, i.e., a non-linear relationship exists. The results show that the three models all contain only one transition function but different numbers of location parameters. The model taking GDPpc as the transition variable has two location parameters, while the other two models separately considering Es and Ul as the transition variables both contain one location parameter. The three models applied in the study all favourably describe the non-linear relationship between economic growth and CO 2 emissions in China. It also can be seen that the conversion rate of the influence of Ul on per capita CO 2 emissions is significantly higher than those of GDPpc and Es on per capita CO 2 emissions.

Keywords: CO 2 emissions; economic growth; non-linear relationship; PSTR model (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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