Nature Environment and Pollution Technology

Yingfa Yang ¹

Affiliations
1 Division of Social Sciences, Hebei University of Engineering, Handan 056038, Hebei, CN

Abstract

Fossil energy supports the normal operation of economic life and has become increasingly important in the development of the national economy. Along with the rapid development of the economy of Hebei Province, problems related to air pollution have become increasingly prominent. Fossil energy consumption accounts for 90% of the total energy consumption of Hebei province, the major driver of which is the combustion of fossil energy. This study collects the time series data of fossil energy consumption and air pollution in Hebei province from 2000 to 2013 and investigates their short- and long-term relationships through co-integration testing and causality testing. A panel model for fossil energy consumption and the economic development of 11 cities in Hebei province is then established, and empirical analysis is conducted using varying-coefficient regression models. Results show that the consumption of fossil energy causes more serious air pollution and constitutes the Granger causality of the aggravation of air pollution. Fossil energy consumption and air pollution are characterized by at least three relationships: a long-term balanced co-integration relationship, a short-term dynamic adjustment mechanism, and a one-way causation. Fossil energy consumption and economic growth are characterized by a long-term co-integration relationship, with regional differences across the 11 cities of Hebei province. Finally, this study proposes relevant suggestions to rationalize the coordinated development between environment and economy, which can ensure the economic growth rate and at the same time reduce the air pollution caused by fossil energy consumption.

Keywords

Fossil Energy, Economic Growth, Air Pollution, Panel Co-Integration.

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