International Journal of Social Science & Economic Research
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Title:
HOW AIR POLLUTION IMPACTS THE ECONOMY? EVIDENCE FROM 31 PROVINCES IN CHINA

Authors:
Geng Jiayi

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Geng Jiayi
Canadian International School of Hong Kong

MLA 8
Jiayi, Geng. "HOW AIR POLLUTION IMPACTS THE ECONOMY? EVIDENCE FROM 31 PROVINCES IN CHINA." Int. j. of Social Science and Economic Research, vol. 7, no. 1, Jan. 2022, pp. 152-179, doi.org/10.46609/IJSSER.2022.v07i01.014. Accessed Jan. 2022.
APA 6
Jiayi, G. (2022, January). HOW AIR POLLUTION IMPACTS THE ECONOMY? EVIDENCE FROM 31 PROVINCES IN CHINA. Int. j. of Social Science and Economic Research, 7(1), 152-179. Retrieved from doi.org/10.46609/IJSSER.2022.v07i01.014
Chicago
Jiayi, Geng. "HOW AIR POLLUTION IMPACTS THE ECONOMY? EVIDENCE FROM 31 PROVINCES IN CHINA." Int. j. of Social Science and Economic Research 7, no. 1 (January 2022), 152-179. Accessed January, 2022. doi.org/10.46609/IJSSER.2022.v07i01.014.

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ABSTRACT:
This paper examines the relationship between air pollution and economic growth on the provincial level using China as the case study. Considering the economic heterogeneity of the different locations, a random effect regression model is built to analyze how the Air Quality Index (AQI) impacts Gross Domestic Product Per Capita (GDP Per Capita) using data from 31 provinces in China. After the application to the model, the results show that there is a negative relationship between the Air Quality Index (AQI) and the Gross Domestic Product (GDP Per Capita). When the Air Quality Index (AQI) decreases throughout the years, a reduction in GDP is shown in the results. This result is further examined from statistical perspectives, which includes residual assumption check, significant t-test, etc. This result of the research and model is believed to provide useful insights for the policy-makers to make economic and environmental-related decisions.

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