Analysis of the Impact of Carbon Emission Control on Urban Economic Indicators based on the Concept of Green Economy under Sustainable Development

Abstract

With the deepening of the concept of sustainable development, a green economy has become the primary goal of urban development. Therefore, to improve the sustainability and far-reaching development of the urban economy, this work first discusses the concept of sustainable development. Second, the concept of a “green economy” is discussed. Lastly, based on the concept of green economic development, this work studies carbon emissions in Hebei Province, China, and discusses the impact of carbon emissions on the urban economy. On this basis, the impact of carbon intensity and CO2 emissions on economic growth is analyzed by establishing an endogenous growth model and state-space model, thereby revealing the importance of carbon emissions to the economic development of Hebei Province. In the analysis process, sensitivity analysis and a robustness test are also used to verify the reliability and robustness of the model results. Finally, this work summarizes the research conclusions and puts forward relevant policy suggestions, which provide a reference for developing a green economy in Hebei Province. The results reveal that from 1999 to 2020, the average output elasticity of labor, capital, and CO2 in Hebei Province are 0.4002, 0.3057, and 0.2941, respectively. This shows that carbon emissions are essential to Hebei’s economic growth. In other words, Hebei’s economic development mainly depends on enterprises with high carbon emissions. Additionally, in the optimistic case, Hebei’s potential output growth rate will show a downward trend, but will soon rise. This indicates that even under strict carbon emission control, Hebei’s economic growth rate will still pick up based on the support of high-tech. This work not only provides a reference for the development of Hebei’s green economic system, but also contributes to the sustainable development of the urban economy in the future.