Empirical Study on the Relationship Among Urbanization, Economic Growth and Carbon Emissions

Abstract

The article comprehensively considers the relationship between urbanization, economic growth and carbon emissions, select annual data on urbanization, economic growth and carbon emissions from 1978 to 2016 to do an empirical analysis of the two-way dynamic relationship between urbanization, economic growth, and carbon emissions by using the vector autoregressive (VAR) model through impulse response, analysis of variance, and Granger causality test. The results show that there is a long-term equilibrium relationship between urbanization and economic growth and carbon emissions; Urbanization is a one-way Granger cause of carbon emissions; There is a two-way Granger causal relationship between urbanization and economic growth, and urbanization has a positive effect on economic growth in the long run; Economic growth is a one-way Granger cause of carbon emissions.

Keywords: Economic growth, urbanization, carbon emissions, vector autoregressive model