Is there an inverted U-shaped curve? Empirical analysis of the Environmental Kuznets Curve in agrochemicals

As the largest contributor to water impairment, agriculture-related pollution has attracted the attention of scientists as well as policy makers, and quantitative information is being sought to focus and advance the policy debate. This study applies the panel unit root, heterogeneous panel cointegration, and panel-based dynamic ordinary least squares to investigate the Environmental Kuznets Curve on environmental issues resulting from use of agricultural synthetic fertilizer, pesticide, and film for 31 provincial economies in mainland China from 1989 to 2009. The empirical results indicate a positive long-run co-integrated relationship between the environmental index and real GDP per capita. This relationship takes on the inverted U-shaped Environmental Kuznets Curve, and the value of the turning point is approximately 10,000-13,000, 85,000-89,000 and over 160,000 CNY, for synthetic fertilizer nitrogen indicator, fertilizer phosphorus indicator and pesticide indicator, respectively. At present, China is subject to tremendous environmental pressure and should assign more importance to special agriculture-related environmental issues.