{
  "title": "Decoupling of Emissions and GDP: Evidence from Aggregate and Provincial Chinese Data",
  "publication": "IMF Working Papers, April 11, 2018",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2018/04/11/decoupling-of-emissions-and-gdp-evidence-from-aggregate-and-provincial-chinese-data-45776",
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  "summary": "We provide a comprehensive analysis of the relationship between greenhouse gas (GHG) emissions and GDP in China using both aggregate and provincial data. The Kuznets elasticity is about 0.6 for China, higher than that in advanced countries but below that of major emerging markets.",
  "sections": [
    {
      "heading": "Key findings",
      "content": "- The Kuznets elasticity is about 0.6 for China.\n- The Kuznets elasticity for China is higher than that in advanced countries but below that of major emerging markets.\n- The elasticity is somewhat lower for consumption-based emissions than for production-based emissions, providing mild evidence consistent with the “pollution haven” hypothesis.\n- The Kuznets elasticity is much lower for the last three decades than for the three previous decades, suggesting a longer-term trend toward decoupling as China has become richer.\n- Provincial evidence: richer provinces tend to have smaller Kuznets elasticities than poorer ones.\n- In addition to the trend relationship, the Environmental Okun's Law holds in China."
    },
    {
      "heading": "Data, scope, and approach",
      "content": "- Analysis uses both aggregate and provincial Chinese data.\n- Emissions examined include production-based and consumption-based greenhouse gas (GHG) emissions.\n- Trend and cyclical relationships between emissions and real GDP are investigated."
    },
    {
      "heading": "Implications and interpretation",
      "content": "- Evidence indicates partial decoupling between GHG emissions and GDP in China, stronger over recent decades.\n- Lower elasticity for consumption-based emissions relative to production-based emissions is consistent with some production being concentrated in regions with comparatively higher emissions intensities (pollution haven dynamics).\n- Heterogeneity across provinces implies that income levels are associated with differing paths of emissions-GDP elasticity.\n\n---\n\n Content in this bundle\n\n- Wp1885\n  - Wp1885 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp1885 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2018/04/11/decoupling-of-emissions-and-gdp-evidence-from-aggregate-and-provincial-chinese-data-45776"
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    "Authors: Gail Cohen, João Tovar Jalles, Prakash Loungani, Ricardo Marto, Gewei Wang",
    "Published: April 11, 2018",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484351000.001",
    "The Kuznets elasticity is about 0.6 for China.",
    "The Kuznets elasticity for China is higher than that in advanced countries but below that of major emerging markets.",
    "The elasticity is somewhat lower for consumption-based emissions than for production-based emissions, providing mild evidence consistent with the “pollution haven” hypothesis.",
    "The Kuznets elasticity is much lower for the last three decades than for the three previous decades, suggesting a longer-term trend toward decoupling as China has become richer.",
    "Provincial evidence: richer provinces tend to have smaller Kuznets elasticities than poorer ones.",
    "In addition to the trend relationship, the Environmental Okun's Law holds in China.",
    "Analysis uses both aggregate and provincial Chinese data.",
    "Emissions examined include production-based and consumption-based greenhouse gas (GHG) emissions.",
    "Trend and cyclical relationships between emissions and real GDP are investigated.",
    "Evidence indicates partial decoupling between GHG emissions and GDP in China, stronger over recent decades.",
    "Lower elasticity for consumption-based emissions relative to production-based emissions is consistent with some production being concentrated in regions with comparatively higher emissions intensities (pollution haven dynamics).",
    "Heterogeneity across provinces implies that income levels are associated with differing paths of emissions-GDP elasticity.",
    "**Wp1885**"
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