Econometric Study On Environment Pollution And Growth

Grossman and Krueger put forward EKC hypothesis in 1995.Scholars have conducted a large number of empirical researches and expanded research afterwards, and made a lot of achievements. But there are many flaws on EKC : Assuming without regarding geographical factors, which in reality is impossible or very difficult to set up; economic growth and environment pollution is an interactive relationship, and a single model may cause endogeneity bias. Based on previous studies, standing the angle of EKC flaws,we put forward EKC amendment approach in order to make research results more realistic and more accurate. Therefore, the work of this paper includes the following six areas:1. Introduction section. The paper expounds overview of the background and significance; it also describes the main research contents and methods as well as drafting the framework and innovation of this paper.2. The theoretical support section. This section focuses on four theoretical to compare the related literature and summarize the latest research trends on environmental pollution.3. China’s environment pollution and economic growth analysis section. The paper analyzes the total economy, the structure and per capita GDP on China. Through the three indicators of environment pollution we described both vertical and horizontal aspects of the related statistics.4. Analysis section based on the EKC defect angle. The spatial distribution of environment pollution and the complex dynamic relationship of environment pollution and economic growth, which is contrary to the basic assumption on the Kuznets curve theory. This section established spatial regression models and EKC simultaneous equations model to study the relationship between C hina’s environment pollution and economic growth.5. The fifth chapter is still empirical analysis. This section use EPIOLG(endogenous mortality model introduced government environment pollution inputs) model to calculate the optimal ratio of government investment in GDP, and optimal ratio were analyzed.6. Conclusions and Recommendations section. Based on empirical research, combining research theory, we put forward some suggestions for C hinese environment pollution and economic development.