Environmental quality and economic sustainable development in Henan province

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ENVIRONMENTAL QUALITY AND ECONOMIC SUSTAINABLE DEVELOPMENT IN HENAN PROVINCE

Chen Yang, Henan Institute of Science and Technology, China

Svitlana Lukash, Sumy National Agrarian University, Ukraine

Guo Qing Ran, Henan Institute of Science and Technology, China

Originality / scientific novelty. Author's developed econometric model is very useful in empirical assessment for the sustainable development of resources, environment and economy in Henan Province, and to provide a decision-making reference for the development of ecological environment in Henan Province. Accordingly, the proposed method, in the face of high-speed economic development today, put forward the countermeasures of economic sustainable development.

Practical value / implications. Using the author 's proposed method leads to the achievement of the following results: can better promote Henan Province economy and ecological environment coordinated development.

Key words: sustainable development, Environmental Kuztets curve, economic growth; environmental pollution, Henan province, China.

Introduction and review of literature

With the progress of science and technology, great improvement of social productivity, humanity has created unprecedented material wealth. But with the rapid increase in population, excessive consumption of resources, environmental pollution, unemployment, ecological destruction and other issues are increasingly prominent, at the same time with the rapid development of the economy, the contradiction between economic development and social development has gradually emerged. In the process of economic development, we can reduce the damage to ecological environment as far as possible, improve the ecological environment, and seek the coordinated development of economic development and ecological environment [1; 2; 3; 4]. Many scientists [5; 6; 7; 8; 9; 10] concern about confrontations in trilemma: population growth, economic growth and environmental sustainability - and reveals the vast incompatibility of current models of economic development with environmental sustainability. Using statistical data collected from across the globe, national economies and natural resource use were closely examined by an international team of scientists using a mathematical model [11; 12; 13; 14; 15; 16]. Thus, it is crucial to understand how to promote sustainability, i.e., reducing the environmental externalities without compromising economic growth.

Environment and people's life have a great relationship; the quality of the environment does not affect human production and life all the time. Muradian, O'connor and Martinez-Alie [12] define «environmental pressure» as the amount of pollutants emitted annually to reflect the extent of environmental degradation. Under the background of economic globalization and China's continuous improvement of market economy, Henan Province has entered to the rapid development stage of urbanization at present. Urbanization and environmental quality affect each other and restrict each other. With the rapid development of urbanization in Henan province, a series of environmental problems have been raised, and some problems have become obstacles to the sustainable development of cities. Economic growth depends on environmental development; there is a two-way relationship between economic growth and environmental quality change. The suitable environment is beneficial to the adjustment and development of the industrial structure, but the unreasonable economic structure or the incomplete development of the economy will affect the local and regional environmental quality problems and leave hidden trouble for the development of society and the reproduction of human beings. For conducting our research, we selected next parameters: gross national product (GDP), index of economic growth in Henan Province and also industrial waste gas, water waste and sulfur dioxide emissions in Henan Province.

The purpose of the article. The main objective of this article is to analyze the problems existing in the process of harmonious development of nature and economy, to make an empirical assessment for the sustainable development of resources, environment and economy in Henan Province, and to provide a decision-making reference for the development of ecological environment in Henan Province. Based on the econometric model of the relationship between economic growth and environmental pollution (based on Environmental Kuznets Curve), this article analyzes the relationship between economic growth and environmental pollution in Henan Province, and studies the natural economic relationship.

Results and discussion

This article analyzes the relationship between the overall environmental quality and economic growth in Henan Province over the years.

Economic development. Economic system of China had a lot transformation, from a single public ownership economy to an economy with multiple economic components coexisting with public ownership as the main body; from a planned economy to an economy supplemented by market regulation. Economic development and transformation are constantly promoting the process of social development. In recent years, the theme of modern development, such as realizing a well-off society in an all-round way, speeding up the transformation of economic structure, promoting scientific and technological innovation, economic environmental protection, building a harmonious society, «Belt and Road Initiative» and so on, has become more relevant actual themes.

Fig. 1. GDP per capita in Henan Province, 1997-2018 (Unit: CNY)

Source: National Bureau of Statistics of the people's Republic of China.

With the continuous advancement of industrialization, urbanization, and informatization and high-quality development requirements, the profits of industrial enterprises in Henan Province, and the operating income of the Internet and related service industries have become more and more obvious. The GDP of Henan Province was 404.019 billion Yuan in 1997 to 480.558 billion Yuan in 2018, The average annual growth rate is 7.6 %. GDP per capita of Henan Province increased from 4,389.00 Yuan in 1997 to 50,152 Yuan in 2018, an average annual increase of 12.8 %. At the same time as the people's income continues to increase, the requirements for living standards and quality of life are also increasing.

Environmental Quality. In the past two decades, China has developed a lot of acts on environmental quality. After the 1992 United Nations Conference on Environment and Development, there was proposed to follow the scientific concept of development and to develop in an all-round, sustainable and coordinated manner. At the 17th National Congress, was put forward the establishment of ecological civilization, and the 18th Congress strengthened the promotion of ecological civilization. In the 20th century, was also discussed the development of circular economy and the construction of a resource-saving and environment-friendly society. henan environmental pollution economy

It can be said that a large part of the sources of these ideas and the problems of resources, environment and ecology was caused by the industrial revolution. With the continuous development of the economy, people's living standards are gradually improved and resources appear at the same time. All kinds of environmental pollution and ecological destruction problems, such as resources' shortage, environmental pollution and so on, are caused by the industrial revolution and unreasonable activities of humanity beings in the final analysis.

Fig. 2. Per capita GDP and Environmental Quality Indexes in Henan

Province, 1997-2018 (Unit: CNY)

Source: National Bureau of Statistics of the people's Republic of China.

The rapid development of industry in Henan Province also poses a great challenge to the environmental quality of Henan Province. The total amount of industrial waste water in 1997-2018 was from 1.208 billion tons to 656.83 million tons in 2018. In these 20 years, the total amount of industrial waste water was from 1.208 billion tons to 656.83 million tons in 2018. As can be seen from the figures, industrial waste water has decreased somewhat in the past two decades, from seven hundred and ten billion one hundred and thirty nine million nine hundred and ninety nine thousand nine hundred and ninety nine m³ in 1997-2018 to two trillion eight hundred and thirty two billion one hundred and forty five million m³ in 2018, with an average annual growth rate of 23.8 %; From 1997 to 2018, sulfur dioxide increased from 833000.00 tons to 108212.56 tons, a drop in numbers, but China environmental problems are still a huge task. Although investment in industrial pollution control is increased every year and measures are implemented to improve the situation, the problem of environmental pollution is still serious in some areas.

In general, the relationship between economic development, water pollution and atmospheric environment has passed through the period of scale deterioration with rapid economic growth, and has entered the structural period of economic development and relatively stable environment, and is approaching the elimination period. Our tasks in this article were: to study the relationship between environmental quality and economic growth, to explore the path of harmonious development between important links and economy, and to study the relationship between environmental quality and economic growth.

The environmental quality index must be the index which can reflect the environmental quality. In this article were selected the industrial waste water, waste of gas and sulfur dioxide emissions for evaluation of environmental quality. The index of economic development (per capita GDP of Henan Province) and industrial waste water parameters were collected from the national data network of the «National Bureau of Statistics of the people's Republic of China ». The data of industrial waste gas and industrial sulfur dioxide (SO₂) were selected from the following tables: the Environmental situation Bulletin of Henan Province over the years and the Statistical Yearbook of Henan Province. With the help of STATA software, the environmental quality index is taken as dependent variable and the per capita GDP as independent variable for curve fitting simulation.

Table 1. Per capita GDP and Environmental Quality Indexes in Henan Province from 1997 to 2018

Source: National Bureau of Statistics of the people's Republic of China.

The fitting data adopts the best fitting effect and the simplest four-order polynomial, and the expression is as follows:

Y - is pollutant emission;

X - is per capita GDP; t - is time;

Я₀, Яi, Я₂, Я₃, Я₄ - are model parameters.

As can be seen from the above formula, different combinations of parameters should have different curve forms (Table 2).

Table 2. The Curve form corresponding to the combination of different parameters in the Model

Source: calculated by authors.

Four-curve regression analysis of industrial waste water, waste gas, sulfur dioxide and per capita GDP in environmental quality index was carried out.

The fitting Curve Analysis of the relationship between Industrial Waste water discharge and per capita GDP. The resulting curve of the relationship between industrial waste water discharge and per capita GDP is shown in the first diagram of Table 3. The horizontal axis of the diagram is GDP; the vertical axis is the discharge of industrial waste water. According to Table 3, R² of industrial waste water is 0.83, t value is 8.40 and -9.27. We know that when t > 2, the level of significance is higher. However, the two simulation values of industrial waste water are relatively large, the significance level is more obvious.

Table 3. Regression results of GDP and Waste water

Source: calculated by authors.

Table 4. Regression results of GDP and exhaust gas

Source: calculated by authors.

Table 5. Regression results of GDP and SO2

Source: calculated by authors.

At the same time, we can see the curve of the relationship between industrial waste water discharge and per capita GDP (Fig. 4). The trajectory is that the growth first reaches a peak and then decreases, and the highest point is about the highest point. GDP appeared at about 2500 Yuan, possibly related to the policy and recent economic situation. From the graph point of view, it is beneficial to control and improve the industrial waste water and reduce the discharge of industrial waste water by increasing the investment of the industrial pollution prevention and control fund, and carrying on the treatment and examination to the enterprises with serious pollution.

Table 6. Regression results of Economic growth and Environmental Quality Model in Henan Province