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¿¬±¸ Á¦¸ñ: Analysis of Interaction between Regional Economic Growth and Air Pollution in China and Evidence from Simultaneous Equation Models

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As the increasing of haze weather, the problem of air pollution control has become the most noteworthy livelihood issue in China. In order to improve the air quality and achieve the environmental protection goal on emission reduction, Chinese central government launched a series of environmental policy to strengthen the environmental regulations in recent decades. Among these policies, the most important one is the implement of environmental tax reform. There exists a vast regional disparity between middle-western regions and coastal regions in term of emission amount, intensity, and socio-economic development level. Chinese local government launched a different environmental regulations standard in different provinces and cities with a different environmental tax level. Because different provinces, autonomous regions, and municipalities face different environmental and economic status quos, the Law authorizes the provincial-level governments to determine and adjust the applicable tax amount on air and water pollution within a specified range.

 

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The purposes of this paper is to find out whether exists a different interaction between industrial pollution emission and regional economic growth between the developed regions and less developed regions in China.



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To understand the interaction between air pollution and regional economic growth in China, we apply the simultaneous-equation panel data models and analyze the socioeconomic indictors such as Per Capita GRP and volume of regional industrial emission of Sulphur dioxide emissions in 285 cities across 31 provinces in mainland China from 2006 to 2016.



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With the strict limitation of the emission, pollution intensive industries make efforts on promoting the technology for environmental protection and reduce the emission. On the other side, governments in the less developed western regions refer to reduce the enforcement of environmental regulations in order to promote the development of local economic. Comparing the results of the simultaneous-equation models between western region and eastern region and find out that the effect of air pollution emission on GDP per capita is opposite in west and east. In the west, emission has a positive impact on economic growth, however, negative effect in the east. In the developed eastern regions, emission level decrease when the economic development level increase; on the contrary, emission level increase with the economic development of the less developed regions. Besides, we can see that pollution resource and industrial structure, energy consumption have a positive effect on the air pollution; which means that the emission is more serious in the region with and more pollution firms, energy consumption higher percentage of second industries of GDP.

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