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Decoupling of Emissions and GDP: Evidence from Aggregate and Provincial Chinese Data, Gail Cohen, João Tovar Jalles, Prakash Loungani, Ricardo Marto, Gewei Wang

Abstract
We provide a comprehensive analysis of the relationship between greenhouse gas (GHG) emissions and GDP in China using both aggregate and provincial data. The Kuznets elasticity is about 0.6 for China, higher than that in advanced countries but below that of major emerging markets. The elasticity is somewhat lower for consumption-based emissions than for production-based emissions, providing mild evidence consistent with the “pollution haven” hypothesis. The Kuznets elasticity is much lower for the last three decades than for the three previous decades, suggesting a longer-term trend toward decoupling as China has become richer. Further evidence of this comes from provincial data: richer provinces tend to have smaller Kuznets elasticities than poorer ones. In addition to the trend relationship, we find that the Environmental Okun's Law holds in China
Table Of Contents
Cover -- Contents -- I. Introduction -- II. Trends and Cycles at the Aggregate Level -- A. Empirical Approach -- B. Data -- C. Baseline Results -- III. Are Trends and Cycles Changing? -- A. A Longer Time Horizon Perspective -- B. A Provincial Level Perspective -- IV. Conclusion -- List of Figures -- 1. Consumption- and Production-Based GHG Emissions -- 2. Trends and Cycles across Different Filtering Methods -- 3. Trends and Cycles in Production- and Consumption-Based Emissions -- 4. Trends and Cycles in the Eastern Region -- 5. Trends and Cycles in the Central Region -- 6. Trends and Cycles in the Western Region -- 7. Kuznets Elasticities and Real GDP Per Capita across Chinese Provinces -- 8. China's Provinces and U.S. States mean Kuznets Elasticities by Inter-Quintiles Ranges -- A1. Kuznets Residuals at the Aggregate Level -- A2. Kuznets Residuals at the Provincial Level -- A3. Okun Elasticities across Chinese Provinces -- A4. Kuznets Elasticities across Chinese Provinces -- A5. Elasticities and Economic Structure -- List of Tables -- 1. Contrasting Elasticities at the Aggregate Level -- 2. Long-Run Elasticities at the Aggregate Level -- 3. Okun and Kuznets Elasticities at the Provincial Level -- B1. Augmented Dickey-Fuller Test for Unit Root -- B2. Okun and Kuznets Correlations at the Provincial Level -- Appendix -- References
Language
eng
Literary Form
non fiction
Physical Description
1 online resource (27 pages)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781484351611

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