How Do Economic Growth, Urbanization, and Industrialization Affect Fine Particulate Matter Concentrations? An Assessment in Liaoning Province, China

Abstract

With China’s rapid development, urban air pollution problems occur frequently. As one of the principal components of haze, fine particulate matter (PM2.5) has potential negative health effects, causing widespread concern. However, the causal interactions and dynamic relationships between socioeconomic factors and ambient air pollution are still unclear, especially in specific regions. As an important industrial base in Northeast China, Liaoning Province is a representative mode of social and economic development. Panel data including PM2.5 concentration and three socio-economic indicators of Liaoning Province from 2000 to 2015 were built. The data were first-difference stationary and the variables were cointegrated. The Granger causality test was used as the main method to test the causality. In the results, in terms of the causal interactions, economic activities, industrialization and urbanization processes all showed positive long-term impacts on changes of PM2.5 concentration. Economic growth and industrialization also significantly affected the variations in PM2.5 concentration in the short term. In terms of the contributions, industrialization contributed the most to the variations of PM2.5 concentration in the sixteen years, followed by economic growth. Though Liaoning Province, an industry-oriented region, has shown characteristics of economic and industrial transformation, policy makers still need to explore more targeted policies to address the regional air pollution issue.