An empirical analysis on the relationship between economic growth and environmental pollution in Hebei

Based on the time series data of five pollution indices and per capita GDP in Hebei from 1991 to 2012,this paper investigated the interactions between economic growth and environmental pollution through EKC,impulse response functions and variance decomposition.Results indicate:The environment becomes deteriorated with the rapid economic growth of Hebei.The economic growth could push up pollution level for a long time while the growth of pollutant emissions cannot significantly promote the economy.At this stage,the most challenging problem of Hebei economy is the competition between economic growth and environmental management.To solve this problem and realize the coordinated development of economy and environment,we should speed up technical innovation and optimize economic structure using a combination of emission trading and tax subsidies.