Regulatory Reform in China and the EU
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Regulatory Reform in China and the EU

A Law and Economics Perspective

Edited by Stefan E. Weishaar, Niels Philipsen and Wenming Xu

With the Chinese government planning a comprehensive and detailed reform of regulatory law, the European experience is likely to contribute significantly. This timely book analyses comparative Chinese and EU regulatory reform from a Law and Economics perspective.
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Chapter 9: Does the environmental Kuznets curve hold for China? An empirical examination

Binwei Gui, Michael G. Faure and Guangdong Xu

Abstract

In this chapter we test the applicability of the environmental Kuznets curve (EKC) to China and find that, at least for certain pollution indicators such as industrial waste gas and SO2, there is indeed an inverted U-shaped trend that conforms to the prediction of the EKC. In addition, we explore the role of institutions in shaping the connection between income and pollution in China, and find that institutional variables to a large extent account for the heterogeneity in EKC patterns in China’s different regions. Finally, we examine the channels through which institutions may influence pollution control and environmental quality, and find that institutional indicators affect the pollution level through the operational outcomes of pollution abatement measures rather than by affecting structural transformation or the volume of pollution abatement facilities.

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