The Environmental Kuznets Curve (EKC) Hypothesis in China: A Review

Abstract

China is the largest total pollution emitter country on the globe and a vast literature has investigated the environmental Kuznets curve (EKC) hypothesis in China. Thus, we aim to review empirical studies on the testing of the EKC hypothesis using different pollution proxies and area samples in China. The EKC hypothesis can be validated by establishing an inverted U-shaped or an N-shaped relationship between pollution and economic growth. In this review of the Chinese literature, the validity of the EKC hypothesis is found more often than its absence. In comparison, a higher proportion of the studies validated the EKC hypothesis using global pollution proxies compared with local pollution proxies. Moreover, a greater percentage of the studies substantiated the EKC hypothesis using Chinese provincial and city-level data compared with aggregate national data. To validate these findings, we applied logistic regression, and the chance of the validity of the EKC hypothesis was found to be 5.08 times higher than the absence of the EKC if a study used a global pollution proxy. Moreover, the chance of the existence of the EKC hypothesis was found to be 4.46 times higher than the nonexistence of the EKC if a study used Chinese provincial, city, sectoral, or industrial data.