The impact of anti-corruption on the environmental kuznets curve: The case of China

Abstract

This study makes an empirical test of the impact of anti-corruption on the relationship between economic growth and the environment and its spillover effects based on the balanced panel data of 31 provinces and cities in China from 2006 to 2017. Moreover, this study puts anti-corruption factors into the framework of the new Environmental Kuznets Curve (EKC) model using the panel model and spatial Durbin model. The following are the findings of this study. (1) EKC in China presents an inverted ‘N’ shape with spillover effects between regions. (2) To a certain extent, anti-corruption can affect the turning point and shape of the EKC by optimising economic growth and curbing environmental pollution. (3) Anti-corruption within the region will impact the EKC outside the region, but the spillover effect is lower than the internal effect. (4) Time differences exist in EKC. The post-18th National Congress of the Communist Party of China significantly presents an inverted N curve that is different from the pre-18th National Congress condition. Besides, anti-corruption has significantly reduced the inflexion point of the relationship between economic growth and environmental pollution. Hence, anti-corruption can maintain economic growth to a certain extent while restraining environmental pollution. China shall continue to firmly promote the process of anti-corruption to ensure sustainable economic and environmental development.