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Environmental Kuznets curve hypothesis for sub-elements of the carbon emissions in China

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Abstract

The purpose of this paper was to investigate the validity of the environmental Kuznets curve (EKC) hypothesis for the period between 1977 and 2013 by using the sub-elements of carbon (CO2) emissions in China. To this end, the fully modified ordinary least squares and pairwise Granger causality methodologies have been employed. As a result, it is found that financial development leads to an improvement in environmental performance in China for many kinds of pollution, including the following: liquid fuel pollution, solid fuel pollution, residential buildings and commercial and public services pollution, and electricity and heat production pollution. The findings indicate that an increase in per capita consumption of energy will lead to an increase in eight different sub-elements of the carbon emissions. The highest impact is for per capita CO2 emissions and the lowest impact is for liquid fuel CO2 emissions. The findings also suggest that the EKC hypothesis is valid for CO2 emissions from gaseous fuel consumption, liquid fuel consumption, solid fuel consumption and transportation. However, the EKC hypothesis is not valid for aggregate CO2 emissions, CO2 emissions from residential buildings and commercial and public services, from electricity and heat production and from manufacturing industries and construction.

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Notes

  1. The EKC is named after Kuznets (1955) (Kuznets S. 1955. “Economic growth and income inequality”, American Economic Review 45: 1–28) who hypothesized that income inequality first rises and then falls as economic development proceeds.

    For this hypothesis, in the first period of industrialization, pollution grows fast since high importance is given to increase the output, and people are more concerned in jobs and income than fresh air and water (Dasgupta et al. 2002). The rapid growth in dispensable causes in greater use of natural resources and emission of pollutants, which in turn put more pressure on environment. People are too poor to pay for abatement, and/or ignore environmental consequences of growth. In later period of industrialization, as income rises, people value the environment more, governing institutions become more effective and pollution level decreases (Dinda 2004; Nasr et al. 2014).

  2. j = Total CO2, CO2 from Gaseous, CO2 from Liquid, CO2 from Solid, CO2 from Res. build, CO2 from Electricity, CO2 from Manufact., CO2 from Transport.

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Authors and Affiliations

  1. Department of Economics, Nevsehir Hacı Bektas Veli University, 50300, Nevsehir, Turkey

    Aslan Alper

  2. Department of Business Administration, Nuh Naci Yazgan University, 38170, Kayseri, Turkey

    Gozbasi Onur

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  1. Aslan Alper
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  2. Gozbasi Onur
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Correspondence to Aslan Alper.

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Alper, A., Onur, G. Environmental Kuznets curve hypothesis for sub-elements of the carbon emissions in China. Nat Hazards 82, 1327–1340 (2016). https://doi.org/10.1007/s11069-016-2246-8

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