A Study On The Relationship Between Environmental Pollution And Economic Growth In Zhejiang Province

Zhejiang province, as an economically strong province with Scarce resources, is located in the east of China.The economic growth driven by the industry has brought serious environmental pollution problems in Zhejiang province. In recent years, indicator of industrial pollution has been well controlled in industrial waste water and solid waste. But emission of industrial waste gas are growing fast at a rate of three times higher than discharge of waste water, which is one of the major causes of haze.In 2013,there are 239 haze days in Hangzhou, which hit the recored, the concentration of PM2.5 exceed international standards more than 1 times.Therefore, the research on the relationship between industrial emission index and economic growth has a certain practical significance, in view of the new situation of industrial emission in Zhejiang province.According to the traditional theory of EKC, the pollution emissions will increase first and then decrease spontaneously with the growth of the economy, appears reversed "U".The purpose of this study is to make clear the degree of application of EKC theory to the industrial waste gas emission index in Zhejiang Province, and analysis the mechanism of economic growth on industrial waste gas emission.Based on consulting the domestic and foreign literature, firstly we expound the theory of environmental pollution and economic growth,and then put the focus on EKC research in theory, form, mechanism.Secondly, described and analyzed the industrial pollution and economic growth in Zhejiang province by using graphics and tables.Thirdly, based on the theory of EKC, using Eviews software to collect the relevant data of Zhejiang Province during 2000-2014, we fit the pollution and rate of growth about Industrial waste gas with economic of EKC,and analysis of the causes and the turning point of EKC graph.Then analysis the mechanism and reasons through index which include the scale effect, structure effect, technological effect by unit root stationery test, cointegration test, error correction model, Granger causality test and impulse response.Finally, summarized the text and put forward some policy suggestions.This paper make the following conclusions through the research.Firstly, Zhejiang province’s economic growth and industrial waste gas emissions are N curve, does not meet the traditional EKC inverted U shape.And the growth rate of the straight line with upward sloping indicate that the environment will not improve spontaneously, which shows that industrial waste of Zhejiang province will growth rapidly and continuously.Secondly, the level of GDP growth and the expansion of the economy is accelerate industrial emissions, reduction in the proportion of industry and the increation of scientific and technological activities expenditures help reduce the industrial waste gas emissions in long-term perspective.But a serious shortage of funding of science and technology of Zhejiang Province caused little effect.Every 1% increase in technology effect decreased industrial emissions by only 0.001711%.Technology has less effect in emissions of pollution than the GDP and increase the proportion of industrial.Thirdly, optimization of industrial structure can promote economic development and technical input, and reduce industrial emissions; Finally, industrial waste gas emission is stable to the structure and technical effect, and is sensitive to the scale effect.According to the conclusions,this paper puts forward policy recommendations from five perspectives, which are changing the concept of development, increasing investment in science and technology, promoting industrial upgrading, defining the definition of property rights and improving laws and regulations.