Growth and environmental pollution: empirical evidence from China

The rapid economic growth of China has attracted the attention of economists, researchers and politicians. China is one of the largest economies in the world, with its gross domestic product (GDP) rising on an average above 9 percent. This economic growth is considered responsible for environmental degradation, which appears to be the most significant problem that economic growth causes. The purpose of this paper is to explore China's carbon emissions during 1960‐2006, focusing on the role of growth, trade and the value added by various sectors.

Using time series data, this paper investigates China's carbon emissions during 1960‐2006, with particular focus on the direct role of growth and in connection to trade and the value added by various sectors such as agriculture, industry and services.

The authors' empirical results indicate the presence of an inverted U‐shaped curve between CO₂ emissions and growth represented by the GDP per capita. Trade seems to be an important determinant in this relationship.

Such empirical findings provide evidence for policy implications regarding the role of growth, trade and the value added by the various sectors of the economy on environmental degradation.

This study is the first effort to explore the associated implications of growth, trade and the effect of the various sectors' value added on environmental damage in an environmental Kuznets curve framework.