Empirical Analysis Of Hunan Environmental And Economic Relations

Nowadays, the relation of environment and economy become where the shoe pinches which makes human development harmonious. Conflict of environment and economy extrude. On the one hand, economic increase makes industrialized contamination increased continuously and results in decline in environmental quality. Environmental problems threaten human survival and develop; on the other hand, environmental labefaction restricts economic increase. From analyzing this conflict, this paper uses some basic theories of environment economics and econometrics and adopts some research methods which are diagnoses, information research, theory discuss and so on. This paper starts with empirically analyzing the relation of environment and economy by means of econometric model and on basis of selective environmental index and economic index in Hunan from 1989 to 2006. This paper uses econometric model to analyse quantitative relation between them. Using cointegrate test, This paper tests cointegrate relation between environmental index and economic index to seek long-term equilibrium. Using VAR model and E-G two steps method, this paper sets up VEC model and ECM model to seek short-term dynamic relation. Then, it analyses short-term causality between environmental index and economic index. It uses impulse response function and variance decomposition analysis to review interactional intension and incipient infection in them. Finally, this paper advances countermeasure and advice which can keep environment and economy going the way of circular economy in Hunan.This paper is five chapters. The first chapter introduces the research background, then, it introduces the research way and frame, finally, it advance innovative spot and research meaning in this paper. The second chapter introduces correlative literature about the relation of environment and economy and advances my attitude, then, it introduces theory analysis of environment and economy in aspect of mutual influence between environmental quality and economic increase. The third chapter introduces some econometric research methods, such as basic concept in time series model, unit root test, cointegrate theory and vector autoregression theory. The fourth chapter is textual emphases. The main content of the chapter are as follows: the first passage is choosing data and variable; the second passage is unit root test and cointegrate analysis; the third passage is causality test; the fourth passage is impulse response function and variance decomposition analysis. This paper makes detailed analysis and brief summary in last three passages. The fifth passage is conclusion and policy advising.