Research on energy efficiency and environmental pollution in China: A simultaneous equations approach

Abstract

This paper examined the relationship between the energy efficiency and the environmental pollution. By using the data of energy intensity and economic loss caused by environmental pollution (ELP) in China from 1989-2009, a simultaneous equations was developed. The result of two-stage OLS estimation suggested that the energy had exerted positive influences on the decreasing of the environmental pollutions. By enhancing the energy efficiency and adjusting the industrial structure and energy consumption structure, China is exploring a road for sustainable development in the energy conservation. © (2012) Trans Tech Publications, Switzerland.