AEMPS

The Effect of Economic Growth on Environmental Pollution

Author

Yihan Pang * 1

1 Zhejiang Wanli University

Corresponding Author

Yihan Pang

Keywords

economic growth, environmental pollution, CO2 emissions, GDP, World Bank data.

Abstract

This study investigates the impact of economic growth on environmental pollution, focusing on the relationship and heterogeneous effects between economic development and environmental quality. Using panel data on economic development and environmental pollution across different countries, we examine the effect of economic growth (measured by GDP) on environmental pollution indicators (PM2.5 concentrations and CO2 emissions) through empirical analysis with control variables such as government health expenditure, manufacturing value added, and coal rents, employing Ordinary Least Squares (OLS) regression and panel models. The results reveal that: (1) For PM2.5, an Environmental Kuznets Curve (EKC) pattern exists—pollution initially rises with income but declines after reaching a turning point; (2) CO2 emissions show a monotonic positive correlation with GDP, indicating difficulty in decoupling global pollutants from economic activity; (3) During the COVID-19 pandemic, economic contraction led to a significant reduction in PM2.5 emissions; (4) OECD countries exhibit partial decoupling of growth and PM2.5, while non-OECD countries show a strong positive growth-pollution link. These findings highlight the need for targeted policies, including reducing fossil fuel reliance, expanding public health and environmental expenditure, and promoting structural transformation, to balance economic growth and environmental sustainability.

Citation

Yihan Pang. The Effect of Economic Growth on Environmental Pollution. AEMPS (2026) Vol. 255: 142-151. DOI: 10.54254/2754-1169/2025.BJ32243.

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