Research On Mutual Relation Between Economic Growth And Development Of Environment

China is in the stage of rapid development of industrialization and urbanization, the contradiction between economic growth and environmental protection is absorbing more and more concerns. Recently, the investment in environment protection of which is increasing gradually, China also reinforces environmental governance and establishes a green environment and economic system to achieve sustainable development.There are complex connections between economic and environment with the interchange of material, energy, information to form an organic system called eco-environment system. Environment is the basic for economic, which has some constrains effect on economic, while the economic develop can affect the environment conversely, there is possibility for coordination of environment and economic. The majority scholars hold the idea that there is an interrelation between economic growth and environment development, but whether it has an optimistic output of EKC left undetermined with various account for the different results.Starting from the present situation of China’s economic growth and environmental pollution, this paper constructs the interaction relationship between economic growth and environmental pollution model based on environmental economics, economic growth theory, econometrics and the hypothesis of Environmental Kuznets curve, then use the cross-sectional data, time series data and panel data to analyze the relationship between China’s economic growth and environmental pollution and other economic factors which affect the economical or environmental system. Firstly, introduce environmental factors into the Solow model based to analyzes the relationship between economic growth and environment, in total competition and returns scale unchanged situation, the environment works as a source of economic growth to explain the Solow residual and a negative product of abandoned places for economic growth to some extent. Secondly, analyze the industrial structure, technological progress and the impact of population size on economic growth and environmental development based on environmental Kuznets curve hypothesis. Thirdly, combine the co integration test, error correction model and panel data model to form a comprehensive analysis of long-term effects and regional impact between economic variables and environmental variables with other factors. Lastly, use national economic and environmental design for empirical analysis to get conclusion that there exists mutual relations between economic growth and environmental development but without the optimistic result of environmental improvement delivered by economic growth, however, which is by no means that the better economic the worse environment, it can reduce the bad effect caused by economic development by choosing appropriate economic growth pattern. For a long run, there is an inverted U-shaped relationship between SO2 in flue gas emissions and GDP, total discharge of waste water and general industrial solid waste generated between quantity and gross domestic production does not meet the Environmental Kuznets curve hypothesis. Influence of industry structure’s on the environment pollution may have different size, but on the whole, the proportion of industry is higher the pollution is more serious. With non industrial pollution is becoming more and more important to the environment, although innovation can reduce pollution and improve the environment, which is not spontaneous affected by other factors. And the effect of population size on the development of economy and environment is uncertain.