The Change of Sources of Growth and Sustainable Development in China: Based on the Extended EKC Explanation

This paper extends the “sources of growth” explanation for Environmental Kuznets Curve (EKC) proposed by Copeland and Taylor in a concise theoretical framework, that is, when sources growth are transformed from physical capital labor to human knowledge, environmental pollution could at first rise then fall with sustainable per capita income. Using provincial panel data 1995 2017 mainland China, an empirical analysis is carried out System Generalized Method Moment (sys-GMM). The results show that: first, EKC hypothesis exists China. inflection point SO2 emissions has been passed all regions, CO2 comprehensive losses have not some but national average level China passed; second, main production factors traditional economy, labor, positively correlated pollution, while green technological progress, knowledge negatively related pollution; third, progress become important promote economic growth, capital, particular, primary factor, which indicates process transforming economy into economy. stage China’s development trend consistent extended EKC, proved hypothesis. practical significance current reform value transformation developing countries. finally puts forward corresponding policy recommendations.