The Relationship Between Economic Growth, Energy Consumption and Environmental Pollution Based on ARDL Model

Abstract

This paper investigated the dynamic relationship among the per capita national income, energy consumption and environmental pollution based on the ARDL model for Liaoning Province. The results of the ARDL model estimation did not clearly confirm the EKC hypothesis that the relationship between economic growth and environmental pollution was inverted U-shaped, but it was estimated that is likely to be the case. The long-run results indicate energy consumption has a positive and significant impact on environmental pollution. The impact of energy consumption on the environmental pollution emissions showed a significant positive relationship at the 5% level, and 1% increase in the energy consumption will lead to 0.77% increase in the environmental pollution emissions. CUSUM and CUSUMSQ tests results show that all coefficients of the model are stable.