Co-integration analysis of Jiangsu construction industry´s economic growth and environmental impact

Both of construction industry´s economic growth and environmental impact have recently been social hot-topics, while most researches about the relationship between them are qualitative or simply quantitative. In this paper, construction industry´s gross product and CO₂ emission are selected to represent its economic growth and environmental impact respectively. Based on the collection of yearly construction industry´s economic growth and environmental impact in Jiangsu Province of China from 1998 to 2007, the linear regression, unit root test, theory of co-integration are carried out in turn. Results show that Jiangsu construction industry´s economic growth and environmental impact have a significantly positive correlation, and both of them are I(2). In addition, co-integration exists between Jiangsu construction industry´s economic growth and environmental impact, and the long-run elasticity between them is about 1.21.