Study on the Relationship between Economic Growth and Environmental Pollution in Shanxi Province Based on EKC

Abstract

Abstract China’s rapid economic development since the reform and opening up has attracted the attention of the world, while a sharp deterioration of the environment accompanies the rapid economic development. Starting from the current situation of economic development and environmental pollution in Shanxi Province, the interaction between economic growth and environmental pollution in Shanxi Province is comprehensively analyzed, and the influence mechanism between the two is revealed. The EKC theoretical econometric model for the relationship between economic growth and environmental pollution in Shanxi Province is constructed and empirically analyzed by combining the multicollinearity test, correlation test, unit root test, and cointegration test to obtain the data required for this study, and at the same time, to determine the research indexes and parameters. The correlation coefficients between GDP per capita and industrial wastewater discharge per capita, industrial exhaust emissions per capita, and industrial solid waste generation per capita in Shanxi province reach more than 0.5, and the Sig values (0.001, 0.004, and 0.005) are less than 0.05, which is a significant correlation, and the R2 coefficient of determination of the fit of the EKC curves of GDP and exhaust emissions is 0.8532, and the expression is y = –0.1169 + 5×102 x – 1×103 x 2 –1.6×103 x 3. This study profoundly reveals the relationship between economic growth and ecological environment and promotes Shanxi Province to achieve the goals of environmental improvement and sustainable economic development.