The regional test of relationship between economic growth and CO2 emissions : --Evidence from Chinese provinces

Abstract: This thesis has investigated the validity of the Environmental Kuznets Curve in the provinces of China which assumes the increase in GDP per capita (income per capita) would generate the raise of CO2 emissions (pollution) until a turning point in which CO2 emissions start decreasing. The study includes 30 provinces over a period spanning from 2000 to 2019 by applying OLS and Fixed-effects regression model with panel data. The findings demonstrate that the provinces of China conform to the EKC theory's projections by exhibiting an inverted-U shape. Apart from that, this study also confirmed the presence of differences in turning points between provinces with high income and those with low income, and the former exhibiting a significantly higher value. Our research findings suggest that policymakers should tailor their CO2 emission reduction policies to the specific circumstances of each region. In the absence of appropriate measures, a negative outcome may arise.