The Study About The Relationship Between Economic Growth And Environmental Pollution

At present, the most popular theory about the relationship between economic growth and environmental pollution is EKC (Environmental Kuznets Curve)hypothesis, which considers that there is the inverted U-curve relationship, increased first and decreased, between the level of environmental pollution and economic growth. The theory Interpretations and empirical studies on this hypothesis is extremely rich. Due to large differences in various countries and regions, there are huge differences in the EKC applicability. There also is a lot of research on the the relationship between Chinese environmental pollution and the level of economic growth, but using provincial panel data analysis is not much. The existence conditions of an EKC hypothesis is presented in the base of a social welfare maximization model, and using Chinese provincial panel data to test this hypothesis. Empirical results show that, EKC hypothesis is basically applicable between Chinese provinces and most provinces are still in the EKC's left, while a few eastern ones have been in the right of the inflection point. Empirical studies have shown that the slightly differences about inflection point levels of various pollutants and reflects the investment efficiency in Chinese pollution treatment is not high, that is, the role of pollution treatment investment for reduction of pollution is not significant. But the regression equation adding pollution treatment investment is lower than the regression equation without the element in the level of pollution of the inflection point, which indicates pollution treatment investment is still conducive to inflection point in advance. This policy advocated in this article is some eastern provinces and cities in the later stages of inflection point should accelerate the environmental remediation efforts, achieve the early rehabilitation of contaminated environment and economic restructuring. While the masses of central and western regions in the process of receiving the eastern industrial transfer should pay attention to the environment protection, study the experience in the east, increase the environmental input, enter the EKC inflection point early and try to avoid taking the road of treatment after pollution.