Econometrics of the environmental Kuznets curve: Testing advancement to carbon intensity-oriented sustainability for eight economic zones in China

Lu, Chenxi; Venevsky, Sergey; Shi, Xiaoliang; Wang, Lingyu; Wright, Jonathon S.; Wu, Chao

doi:10.1016/j.jclepro.2020.124561

Cited by 40 publications

(22 citation statements)

References 46 publications

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“…When the government has sufficient pollution data and uses cleaner manufacturing technologies, then it will set higher environmental standards and enforce stricter environmental rules [ 60 ]. The second turning point of the inverted N-shaped curve will occur simultaneously; the quality of the regional sound environment will improve even though both the FMOLS and the GMM estimations show an inverted N-shape [ 61 ].…”

Section: Resultsmentioning

confidence: 99%

Testing the Environmental Kuznets Curve Hypotheses in Chinese Provinces: A Nexus between Regional Government Expenditures and Environmental Quality

Zeraibi

Balsalobre‐Lorente

Shehzad

2021

IJERPH

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With rapid economic growth, the Chinese government expenditures at various levels have increased adequately. At the same time, the environmental quality in China has deteriorated significantly. In this study, provincial-level data for 31 Chinese provinces during 2007–2017 are used to investigate the impacts of government expenditure on the emissions of three specific measures of environmental degradation. The main objective of this study is to examine the influence of government expenditures, economic growth per capita, environment protection expenditure, and added second-sector value on environmental quality by measuring sulfur dioxide (SO2), chemical oxygen demand (COD), and ammonia nitrogen emissions (AN). Moreover, the study applied the generalized method of moments (GMM) and the fully modified least square (FMOLS) to estimate the co-integration relationship among the underlying factors. The results demonstrate a significant direct effect of government expenditure on improving environmental quality overall in the Chinese provinces, which increases with the level of economic growth. However, the results also confirmed the inverted N-shaped relationship between the pollution factor and economic growth per capita. Our key findings lead toward the manifestation and emphasis of the importance of appropriate policies for restoring government expenditure and, at the same time, strengthening the relationship between the industrial sector and environmental policy standards. Significantly, governments in developing countries should allocate larger budgets for environmental projects in their fiscal reforms for the sake of moving to greener and more inclusive economies with low-carbon activities.

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Section: Resultsmentioning

confidence: 99%

Testing the Environmental Kuznets Curve Hypotheses in Chinese Provinces: A Nexus between Regional Government Expenditures and Environmental Quality

Zeraibi

Balsalobre‐Lorente

Shehzad

2021

IJERPH

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“…In this regard, Lu et al. 9 conducted a study to examine whether or not the Environmental Kuznets Curve hypothesis, is indeed related to the carbon intensity of human well-being, and economic growth within eight economic zones of China, during a time period spanning between 1997–2015. The results of this study gave first-hand signals that seven out of the eight Chinese economic zones started sustainable development (in this case, defined as downward inflection points in the EKC, with inverted “N” shapes) between the time span of 2012 and 2015.…”

Section: Ekc Hypothesismentioning

confidence: 99%

“…Therefore, in a nutshell, economic growth is not the source of the problem, but does provide the means to solve it. 9,10 Additionally, The EKC hypothesis has also been tested for environmental degradation indicators, such as deforestation, sulfur dioxide, carbon emissions, and municipal waste. 1…”

Section: Introductionmentioning

confidence: 99%

“…However, some researchers have found no evidence to support the U-shaped relationship, in either the short or the long term. Holtz-Eakin and Seldon 15 pointed out that the global carbon dioxide emissions growth is not sensitive to average output growth, whereas Wang and Zhang 9 have found a linear relationship between the two variables under consideration. Furthermore, after using certain cointegration techniques, Akbostancı et al.…”

Section: Introductionmentioning

confidence: 99%

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Intertemporal change in the effect of economic growth on carbon emission in China

Zhang

Yin

et al. 2021

Energy & Environment

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This research examines the factor of causality between the variables of economic growth and carbon emissions in China, by conducting full, and sub-sample Granger causality tests for the period of 1965 to 2019. The full-sample Granger causality test is not considered to be authentic, and is rather unstable, as indicated by the parameter stability tests. Therefore, we consider the time variation using a causality test, and the results indicate that the causality exists from the Gross Domestic Product (GDP) growth to the Carbon Dioxide (CO2) emissions. This development essentially suggests that economic growth is critical for China's environment. It also implies that carbon emissions are mainly determined by the increase in economic growth, at some specific period in time. Thus, in this regard, the use of renewable energy sources should be encouraged by policymakers, in order to deal with rise in the energy demand, and promote industrial upgrading, so as to slow down the rate degradation that the environment have been experiencing. However, our empirical results indicate that CO2 emissions are not the Granger reason to GDP. In this case, the government can formulate more conservative reduction policies that pertain to carbon emissions, and will therefore, not impede the economic growth.

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“…Most of these studies confirm an inverted U-shaped relationship between economic growth and CO 2 emissions [ 13 ]. However, the factors involved range from ecological footprints to GHG [ 14 , 15 , 16 , 17 ]. Using solely CO 2 is very limited, provided environmental degradation and damage cannot be solely captured or analyzed through carbon emissions [ 18 ].…”

Section: Introductionmentioning

confidence: 99%

Analysis of the New Kuznets Relationship: Considering Emissions of Carbon, Methanol, and Nitrous Oxide Greenhouse Gases—Evidence from EU Countries

Madaleno

Moutinho

2021

IJERPH

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Decreased greenhouse gas emissions (GHG) are urgently needed in view of global health threat represented by climate change. The goal of this paper is to test the validity of the Environmental Kuznets Curve (EKC) hypothesis, considering less common measures of environmental burden. For that, four different estimations are done, one considering total GHG emissions, and three more taking into account, individually, the three main GHG gases—carbon dioxide (CO2), nitrous oxide (N2O), and methane gas (CH4)—considering the oldest and most recent economies adhering to the EU27 (the EU 15 (Old Europe) and the EU 12 (New Europe)) separately. Using panel dynamic fixed effects (DFE), dynamic ordinary least squares (DOLS), and fully modified ordinary least squares (FMOLS) techniques, we validate the existence of a U-shaped relationship for all emission proxies considered, and groups of countries in the short-run. Some evidence of this effect also exists in the long-run. However, we were only able to validate the EKC hypothesis for the short-run in EU 12 under DOLS and the short and long-run using FMOLS. Confirmed is the fact that results are sensitive to models and measures adopted. Externalization of problems globally takes a longer period for national policies to correct, turning global measures harder and local environmental proxies more suitable to deeply explore the EKC hypothesis.

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Econometrics of the environmental Kuznets curve: Testing advancement to carbon intensity-oriented sustainability for eight economic zones in China

Cited by 40 publications

References 46 publications

Testing the Environmental Kuznets Curve Hypotheses in Chinese Provinces: A Nexus between Regional Government Expenditures and Environmental Quality

Testing the Environmental Kuznets Curve Hypotheses in Chinese Provinces: A Nexus between Regional Government Expenditures and Environmental Quality

Intertemporal change in the effect of economic growth on carbon emission in China

Analysis of the New Kuznets Relationship: Considering Emissions of Carbon, Methanol, and Nitrous Oxide Greenhouse Gases—Evidence from EU Countries

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