The Relationship between Marketization Level and Environmental Quality in China

  •  xiufeng Xing    
  •  Jianxun Ding    


Affected by the global financial crisis, China has proposed a 4-trillion-yuan stimulus package. To dispel the impact and balance the economic growth and ecological improvement, marketization may be an effective means. The article tries to explore the relationship between the two sides. By analyzing the impact of the mechanism between marketization and environmental quality, with the help of econometric model, the quantitative analysis has been made on the above basis. The result shows that with the rising level of Chinese national marketization, the pollution loads of Sulphur Dioxide and Chemical Oxygen Demand of gross industrial output value per 10000 yuan are both on the decline. By modeling SO2 and COD of unit (per 10000 yuan) gross industrial output value and marketization level of 31 provinces in China, the results indicate that the higher the marketization level of a province, the lower emissions of either SO2 or COD. Therefore, the marketization level will better the environmental quality. Relevant solutions are also proposed.

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