Study on the Economic Growth and Environmental Pollution Based the VAR Model

Abstract:

The long term dynamic relation between economic growth and environment pollution is analyzed by using co-integration analysis and granger causality test, generalized impulse response function and variance decomposition method in Jiangsu Province based on the VAR model, and the related data of Environment pollution and GDP indices are from 1982 to 2012. The results indicate that economic growth to environmental pollution is positive and persistent, but that of environmental policy is negative and weak. This conclusion can provide a great reference value for promoting sustainable economic development and formulating relevant environmental policy for Jiangsu Province. the existence of Kuznets inverted U shaped curve for economic growth and environmental pollution depends on the data from different regions and different indexes measuring the levels of environmental pollution.

• Periodical: Applied Mechanics and Materials (Volumes 675-677)
• Pages: 1834-1837
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.675-677.1834
• Online since: October 2014
• Authors: Qing Sun, Jian Gao Deng
• Keywords: Economic Growth, Environmental Pollution, VAR Model

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