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Int. J. Environ. Res. Public Health 2011, 8(7), 2937-2950; doi:10.3390/ijerph8072937
Article

Assessment of the Interactions between Economic Growth and Industrial Wastewater Discharges Using Co-integration Analysis: A Case Study for China’s Hunan Province

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Received: 30 May 2011; in revised form: 26 June 2011 / Accepted: 27 June 2011 / Published: 14 July 2011
(This article belongs to the Special Issue Environmental Health Risk Assessment)
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Abstract: We have investigated the interactions between economic growth and industrial wastewater discharge from 1978 to 2007 in China's Hunan Province using co-integration theory and an error-correction model. Two main economic growth indicators and four representative industrial wastewater pollutants were selected to demonstrate the interaction mechanism. We found a long-term equilibrium relationship between economic growth and the discharge of industrial pollutants in wastewater between 1978 and 2007 in Hunan Province. The error-correction mechanism prevented the variable expansion for long-term relationship at quantity and scale, and the size of the error-correction parameters reflected short-term adjustments that deviate from the long-term equilibrium. When economic growth changes within a short term, the discharge of pollutants will constrain growth because the values of the parameters in the short-term equation are smaller than those in the long-term co-integrated regression equation, indicating that a remarkable long-term influence of economic growth on the discharge of industrial wastewater pollutants and that increasing pollutant discharge constrained economic growth. Economic growth is the main driving factor that affects the discharge of industrial wastewater pollutants in Hunan Province. On the other hand, the discharge constrains economic growth by producing external pressure on growth, although this feedback mechanism has a lag effect. Economic growth plays an important role in explaining the predicted decomposition of the variance in the discharge of industrial wastewater pollutants, but this discharge contributes less to predictions of the variations in economic growth.
Keywords: economic growth; industrial wastewater; error correction; vector auto-regression (VAR) model; vector error correction (VECM) model economic growth; industrial wastewater; error correction; vector auto-regression (VAR) model; vector error correction (VECM) model
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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MDPI and ACS Style

Xiao, Q.; Gao, Y.; Hu, D.; Tan, H.; Wang, T. Assessment of the Interactions between Economic Growth and Industrial Wastewater Discharges Using Co-integration Analysis: A Case Study for China’s Hunan Province. Int. J. Environ. Res. Public Health 2011, 8, 2937-2950.

AMA Style

Xiao Q, Gao Y, Hu D, Tan H, Wang T. Assessment of the Interactions between Economic Growth and Industrial Wastewater Discharges Using Co-integration Analysis: A Case Study for China’s Hunan Province. International Journal of Environmental Research and Public Health. 2011; 8(7):2937-2950.

Chicago/Turabian Style

Xiao, Qiang; Gao, Yang; Hu, Dan; Tan, Hong; Wang, Tianxiang. 2011. "Assessment of the Interactions between Economic Growth and Industrial Wastewater Discharges Using Co-integration Analysis: A Case Study for China’s Hunan Province." Int. J. Environ. Res. Public Health 8, no. 7: 2937-2950.


Int. J. Environ. Res. Public Health EISSN 1660-4601 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert