Abstract

Where is haze from? - Studies on equilibrium relationship between China's foreign trade and environment deterioration

Author(s): Xun Wang

Fast economic growth leads to a fact that China faces serious environmental degradation. Haze becomes the hot topic on which the domestic and foreign media focus. So, where is the haze from? In this paper, the theory of general equilibrium model was used. To study the balance relationship between foreign trade and environmental degradation in China, Data of 28 provinces from 1990-2012 is used. With the help of a panel cointegration technique, we analyzed the structure effect, technological effect and targeted to set up three kinds of environmental pollution indexes. The results show that the scale effect of foreign trade and the influence of industrial waste water are positively correlated, and the effects of industrial solid waste, industrial waste gas showed a negative correlation relationship. Trade dependency is negatively related to the industrial wastewater emission; the consumption structure and environmental pollution are related, namely the income increase pollution did not have a positive impact on the environment.