Revisiting Environmental Kuznets Curve in Relation to Economic Development and Energy Carbon Emission Efficiency: Evidence from Suzhou, China

Abstract

This study empirically examines the effect of economic development on carbon emissions and revisits the environmental Kuznets curve in Suzhou, China. The study made use of the Gross Domestic Product Per Capita (GDPPC) of Suzhou, China as an indicator of economic development as it depicts the entire developmental ecosystem that indicates the level of production activities and total energy consumption. Bearing this in mind, the authors postulate that economic development directly increases carbon emissions through industrial and domestic consumptions. For this purpose, linear and non-linear approaches to cointegration are applied. The study finds the existence of an inverted U-shape relationship between economic development and carbon emission in the long run. Trade openness and industrial share are positively contributing to increasing carbon emissions. Energy use shows a positive sign but an insignificant association with carbon emissions. The study concludes that carbon emissions in Suzhou should be further decreased followed by policy recommendations.