An Empirical Study On The Relationship Between Economic Growth And Environmental Pollution In China

With the rapid development of economy, China’s environmental pollution is becoming more and more serious. Since the reform and opening up, China’s rapid economic development, has caused the world’s attention, and the rapid development of the economy, while the environment is also deteriorating, as the environment pollution is close to saturation, the environment began to restrict economic development. It is not desirable that the traditional "first pollution, post governance" development model, the lack of resources and the deterioration of the ecological environment has become the key factor of sustainable development. At the same time,the development of various regions of the gap, and the development of the model is also different. Therefore, how to develop a reasonable and sustainable development is a great challenge in the present model. Therefore, the research of economic growth and environmental pollution and achieve the "win-win" is very necessary.The first Chapter is introduction. It includes the main research background and significance, domestic and international literature review, and the research methods and research framework, and finally the innovation and shortage of this paper. The second chapter is about the theory of environment and economic growth.The third chapter is from the macro level, it selects the time series data of China from 1983 to 2012,a total of 30 years, of per capita GDP and industrial waste discharge, conducts nonlinear test, establishes a smooth transition regression model.Through empirical analysis, we find that: on the whole, the Chinese environmental Kuznets hypothesis does not exist, that is, economic growth and environmental pollution does not exist relationship of the inverted "U" type. When the per capita GDP across the threshold, the economic growth of the environment is growing, it shows that China’s environmental problems are still grim. It can be said that China’s environmental pollution has been at a rapid deterioration of the situation. This is different from most domestic studies. Third model wastewater show from 1983 after industrial wastewater emissions gradually reduced. This is inconsistent with the practical situation, indicating that instead of using industrial wastewater emissions targets as indicators of environmental pollution of China’s economic growth and environmental pollution problems is undeserved.The fourth chapter is the empirical analysis of the relationship between environmental pollution and economic growth in China. From 1997 to 2012 thenational 30 provinces panel data were selected to establish the panel smooth transition model. At the same time, the model with the index of economic structure, technical progress index, index of urbanization and foreign trade indicators, through the model analysis of the available:, industrial emissions, industrial solid waste model and the carbon dioxide model, per capita GDP and three kinds of environmental pollution indicators do not exist between the inverted "U"- type relationship, and relatively stable, so environmental Kuznets hypothesis does not hold. Second, the economic structure of three kinds of environmental pollution index in most cases performance for negative impact, indicating that the development of the tertiary industry will significantly reduce China’s industrial emissions, industrial solid waste emissions and carbon dioxide emissions. That China is vigorously promoting the optimization and upgrading of industrial structure, will improve the environment of our country. Three,technological progress indicators for the three types of environmental pollutants, the impact is more special, did not show a strong reduction of three types of pollutants,which is related to the level of our technological progress, which is different from most of the research. Four, due to the rapid development of real estate and other industries, the rapid economic development, the initial stage of economic development has not significantly reduced emissions of three kinds of environmental pollutants, but the economic development to a certain extent can significantly improve the environment. Five, foreign trade to a certain extent, the increase of environmental pollution emissions, China’s current foreign trade in most products are pollution intensive products, to a certain extent, cause the deterioration of the environment in our country. Finally the elasticity of per capita GDP of analysis, industrial waste gas model, industrial solid waste model and the carbon dioxide model results show that economic growth is one of the causes of environmental pollution. But with the economic growth, the negative impact of economic growth on the environment is gradually reduced.The fifth chapter is the empirical research on economic growth, carbon dioxide emissions and FDI. In this chapter, we use the GDP data of 27 provinces and cities in China, CO2, per capita FDI and per capita 1995-2012 data to carry out the data, and then use the PVAR model to study the relationship between economic growth, FDI and carbon emissions. The results show that: first, FDI is the cause of carbon emissions. The effects of FDI on carbon emissions show a first to promote the inhibition effect, and the inhibition effect has gradually increased, which shows that China’s investment is more focus on quality, further denied the existence of China’spollution refuge hypothesis". Second, economic growth and carbon emission is reciprocal causation relationship. Third, FDI is the cause of economic growth. The effect of FDI on the economic growth is a kind of unidirectional promotion effect, but this effect has the trend of small change.Based on the above three empirical models, the environmental Kuznets curve hypothesis and the pollution haven hypothesis were tested comprehensively. We proposed policy recommendations for the coordinated development of economic growth and environmental pollution to promote China’s environmental improvement and economic sustainable development goals. And consider the impact of foreign direct investment on China’s economic growth and environmental pollution, and put forward the relevant suggestions.