DOES CHINA EXHIBIT ANY EVIDENCE OF AN ENVIRONMENTAL KUZNETS CURVE? AN ARDL BOUNDS TESTING APPROACH

This paper is an attempt at empirically studying the link between environmental deterioration, economic growth and trade openness in China. The Environmental Kuznets Curve (EKC) augmented as a theoretical framework for study Autoregressive Distributed Lag bounds testing approach applied to test whether China exhibits similar behaviour. With objective of documenting impact international on emission carbon dioxide China, traditional income-emissions model with variables such GDP per capita, squared value annual data period 1971-2014. findings show that CO2 emissions are highly elastic terms their connection income levels, driven beyond certain level makes society cleaner less polluted. Furthermore, it also found that, long run, trade-driven causes more degradation. evidence available from this empirical exercise validates EKC hypothesis run. results have significant policy implications. makers should consider emphasising or continuing promote those measures which will make possible reduce induced growth.