Inter-provincial Heterogeneity Study Of The Impact Of Economic Development On Air Pollution

Since the reform and opening-up, the rapid growth of economy and the energy consumption structure of coal leads to worse situation of air pollution in China, many urban marked several consecutive days of severe smog, continuous heavy haze weather has caused public alarm. Air pollution has significantly affects the quality of human's life and production. It is the major environmental risks that affect human health and the key problem that restrict economic growth and harm harmonious society at present. Facing such a situation that rapid economic development is always accompanied by increasing air pollution, it is impending that studies the impact of economic development on air pollution and the coordinated path between economic and environmental development.The frontier of China is extremely vast and geographical endowments of each province are significant difference, so there is no doubt that the impact of economic development on air pollution presents strong heterogeneity. If we could distinctly describe this heterogeneity, we will formulate differentiated projects that could effectively control air pollution and promote sustainable development of local economy. Moreover we could avoid "catastrophic development" appears.To further explore the inter-provincial heterogeneity of the impact of economic development on air pollution, this paper extends the EKC theory from economic structure and foreign trade for existence degrees excepting consider economic scale factors. Furthermore, this paper uses the extended EKC model to empirical research the inter-provincial heterogeneity of the impact of economic development on air pollution with the data for 31 provinces over the period 1998-2012 as sampled data. The main conclusions of this paper are as follows:(1) The Extended EKC model is effective. Based on empirical results of EKC model, we find that the coefficients of three dimensions of economic development indicators are significantly in most provinces. It shows that three dimensions of economic development indicators significantly influence air pollution. It demonstrates the effectiveness of extended EKC model.(2) Economic development effects on air pollution showed a transparent provincial heterogeneity. Empirical findings based on the extended EKC model show that there are similarities and differences between the provinces'curves which interpret the relationship between air pollution and economic development. The sign and size of coefficients of economic structure and foreign trade for existence degrees are significantly different for different province. It shows that there is obvious provincial-heterogeneity in the impact of economic development on air pollution.(3) A part of provinces become polluted paradise of foreign country. Empirical results of the extend EKC model showed that the coefficients of the foreign trade for existence degrees of most provinces are positive. It means that these provinces maybe undertake high pollution industry from abroad and become polluted paradise of foreign country.The specialty and innovation in this paper mainly reflected in the following two aspects:(1) Economic development is demonstrated from three dimensions. At present, most research at home and abroad simply use per capita gross domestic product to represented economic growth and then further analysis of the relationship between air pollution and economic growth. This paper demonstrates economic development using economies of scale, economic structures and the foreign trade for existence degrees. With this way, we could accurately depict the impact of economic development on air pollution.(2) Focusing on the inter-provincial heterogeneity of economic development impacted on air pollution using variable coefficients panel data model. Most studies about air pollution affected by the scale of economy concentrate on regional heterogeneity of national level. Though some of studies used panel data of province or city, these studies used the pool data model or variable intercept panel data model. It neglected the heterogeneity of slope in different provinces. Moreover this paper uses the variable coefficient model. It focuses on the inter-provincial heterogeneity of economic development impacted on air pollution.