The effects of urbanization on the environment pollution in China (2002-2012)

This paper provides an analytical framework to evaluate whether urbanization could lead to environment pollution or not. This study uses STIRPAT model and recently developed panel regression techniques that allow for heterogeneous slope coefficients and cross-section dependence to model the impact that urbanization has on SO2 emissions for a panel of 28 provinces in China from 2002 to 2012. The estimated contemporaneous coefficients on the urbanization variables are reverse U-shape. The corresponding policy suggestion is that the government should accelerate the urbanization to transfer the economy from a manufacturing based economy to a service based economy