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An Empirical Study on Carbon Emission and Economic Growth in China

Author: ChengJian
Tutor: ZhongChunPing
School: Huazhong University of Science and Technology
Course: Western Economics
Keywords: Economic Growth Carbon Emission Co-integration Granger Causality Test Panel Data
CLC: F205;F224
Type: Master's thesis
Year: 2010
Downloads: 570
Quote: 0
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Abstract


The article focuses on examining the relation between economic growth and carbon emissions in China,by selecting time series data years 1978-2008 and 1990-2007 provincial panel data . First , it summarizes the domestic and foreign literatures systematically.Then,our economic, energy and GHS emissions situation are described respectively.Further,it applies co-integration models,Granger causality test and panel data to analyze the relationship between the two variously.Then the results and feasible policies are given correspondingly.Finally,summarize the paper to get the conclusions and give the feasible policies.Through the theoretical and empirical analysis of economic growth and carbon emissions,co-integration and Granger results show that there is a long-term co-integration link between China’s economic growth and the carbon emission,but just only one-way Granger causality relationship between the two.Economic growth Granger cause carbon emission,but the reverse is not true.This shows that China’s economic growth has a great effect upon carbon emissions,and carbon emissions can be restrained by controlling economic growth.Whereas,the way through the adjustment of carbon emissions to change economic growth is not feasible.Panel Data comes from the provincial region perspective,and the results again proved the existence of two stable positive correlation relationship.It is noteworthy that,because of the unbalance of economic development,carbon emissions around the intercept value is also different.The intercept value of eastern region is higher than the Midwest.As an old industrial base,the value of the northeast three provinces is the highest.This indicates that spontaneous carbon emissions of eastern areas is smaller than elsewhere in the country,and the one of the northeast three provinces is the largest.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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