This paper examines the causes of CO2 emissions in China and looks at the relationships between CO2 emissions and GRP, coal consumption and urbanization. More importantly, this paper tests for differences in CO2 emissions between urban and rural provinces. It is hypothesized that urban provinces will have more of an impact on CO2 emissions than rural provinces. The Solow Growth model is used to explain the increasing consumption of coal with increasing GRP. Negative externalities and Pigouvian tax are used to explain how the government can assess and control excess pollutants from production. Finally, the Environmental Kuznets Curve is used to explain the connection between GRP and CO2 emissions as another explanation for the excess pollution occurring. For testing, a pooled OLS regression is used. The data is a panel dataset with observations from 27 provinces covering the years 2005-2012. Results show that urban provinces have more impact on coal consumption than rural provinces.


Wang, Shu-Ling


Business Economics


Econometrics | Economics | Environmental Studies


China, Urban, Rural, CO2 emission, Coal consumption

Publication Date


Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis



© Copyright 2016 Kelly G. Brethauer