Openness, Economic Development, and the Environment in Post-Reform China: A Model with Empirical Analysis

Abstract

In this study, based on the Environmental Kuznets Curve (EKC) framework, we empirically examine the effects of trade openness and the level of economic development on pollution emission across the Chinese provinces. Our regression analysis shows that increasing trade openness contributes to higher pollution emission, where the effect of the former may be realized through its impacts on total factor productivity and the industry mix. Our analysis also shows that with the continuous growth of output and per capita output, pollution emission and pollution emission intensity both first rise and then fall, which gives support to the EKC hypothesis.