Whether Economic Growth Deteriorates Environmental Quality? — Evidence from Major Cities in China
Recent studies about the relation between economic growth and environmental pollution are mainly focused on cross-country or the long-run change in an individual country, but give little consideration to the heterogeneity internal one country, which no one can afford to neglect. Making use of the data of 31 major cities from 2005 to 2010 in the case of China, this paper analyzes the economy-environment relation by employing Panel Data Model. The results indicate that there is an inverted N-shaped rather than the inverted S-shaped relation between the economic growth and the environmental degradation in the major cities, whereas the relation between the environmental pollution degree and the proportion of the second industry is positive and statistically significant. It is suggest that there is no uniform environmental policy to the different cities, and every city can develop its comparative advantage to increase the economy growth and improve the environmental condition at the same time.