How industrialization and urbanization process impacts on CO2 emissions in China: Evidence from nonparametric additive regression models

- We analyze the nonlinear impacts of industrialization and urbanization on CO2 emissions in China.
- The nonlinear effect of urbanization on CO2 emissions varies across regions.
- Industrialization follows an inverted U-shaped link with CO2 emissions in the three regions.
- The regional difference should be taken into account in reducing China's CO2 emissions.

This paper examines the impacts of industrialization and urbanization on CO2 emissions in China using nonparametric additive regression models and provincial panel data from 1990 to 2011. The empirical results show that there is an inverted U-shaped nonlinear relationship between industrialization and CO2 emissions in the three regions in China. Urbanization follows an inverted U-shaped pattern with CO2 emissions in the eastern region, and a positive U-shaped pattern in the central region. However, the nonlinear impact of urbanization on CO2 emissions is insignificant in the western region. As a result, the differential dynamic effects of industrialization and urbanization on CO2 emissions in the three regions should be taken into consideration in reducing China's CO2 emissions.