The relationship between economic development and air quality for mainland China is investigated by examining the environmental Kuznets curve (EKC). We compile a panel dataset comprising air quality, income, and environmental policy variables for 99 cities from 1992 to 2004 to estimate the EKC relationship. Time-specific fixed effects panel models are estimated and the instrumental variables approach is used to consider the endogeneity of income and policy variables. The regression results indicate that the EKC hypothesis is supported in the case of SO2.
Environmental Economics and Policy Studies 12(3), pp.79-96