Relationships among energy consumption, air pollution and economic growth in China

Abstract

How to solve air pollution problerms in the process of economic development have arouse policy makers’ attention in China. This paper examines the long-term relationships between industrial gas emission, energy consumption and economic growth in China from 1983 to 2014. Results show that both economic growth and energy consumption have significant effect on industrial gas emission for a long period. Energy consumption is the Granger causality of industrial gas emission at the 5% significant level, but not vice versa. Economic growth is also the Granger causality of industrial air emissions, but not vice versa. In the long term, it is essential to decrease energy consumption in order to attain high air quality. Making energy policy should pay attention to improve efficiency, so as to keep balance between economic growth, energy consumption and environmental protection. When making energy and economy policies, the government need to consider the relationship between energy consumption, economic development and atmospheric protection so as to seek a balance between energy , economy and environment protection.