Social Sciences in China (Chinese Edition)

No.5, 2014

Changes in Developmental Stage and Environmental Policy Options in China

(Abstract)

Lin Boqiang and Zou Chuyuan

Due to the difference in economic development between the East and West China and the government’s drastic policy measures to control smog in the former, the situation of Chinese environmental pollution may change. Employing the framework of the ACT model, we have used the relevant 2000-2011 data to test the environmental pollution mechanisms occurring during the two forms of transfer of economic activities, namely “world—China” and “East China—West China.” Our finding shows that in China, the environmental pollution caused by the former is being reduced, but that brought about by the latter not only exists, but has a higher transfer elasticity than the former as regards West China. Therefore, a new round of economic transfer between East and West China caused by environmental controls may accelerate the transfer of pollution between the two regions. The process of controlling environmental pollution in China urgently requires a policy tool that will be able to coordinate the relationship between economic development and environmental protection for East and West China, to prevent West China from taking the same disastrous road as East China.