Mathematical Decomposition and Empirical test of Environmental Effects of Economic Growth: Based on General Equilibrium and Input Output Perspective

Authors: Yinhao Wu*,
Topics: China
Keywords: Economic Growth, Environmental Effect, Mathematical Decomposition, Empirical Test
Session Type: Paper
Day: 4/14/2018
Start / End Time: 4:00 PM / 5:40 PM
Room: Grand Couteau, Sheraton, 5th Floor
Presentation File: No File Uploaded

Purpose: The mathematical derivation of Grossman and Krueger’s “three effects” of economic growth on environmental quality determines the direction of the various effects and verify conclusions with empirical methods.Method: Based on the analysis of general equilibrium and input-output, the change of the total industrial SO2 emission in Zhejiang province is calculated from the Angle of industry, and it is decomposed into "three effects". Conclusion:The scale effect can aggravate the environmental pollution, the direction of the structural effect is uncertain, and the technological effects reduce environmental pollution. Scale effect makes the increase of industrial SO2 emissions in Zhejiang province accounting for 91.1% of the actual SO2 emissions in 2012, including 32.1% SO2 emission reduction from foreign trade,-123.2 % SO2 emission reduction from actor endowment accumulation;the emission reduction proportion of technical effect was 150.4%;the emission reduction proportion of structural effect was 5.6%.

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