CO2 EMISSIONS AND ECONOMICS DEVELOPMENT RELATIONSHIP STUDY-BASED ON THE ENVIRONMENTAL POLLUTION BACKGROUND

In recent years, the environment pollution has caused a lot of problems, especially the CO2 emission. The rapid rise of industrialization and urbanization has had a significant detrimental influence on the environment, according to the World Health Organization's 2011 "Global Air Quality Report," around 2 million people die each year as a result of air pollution. People's physical health is adversely harmed by illnesses, the majority of which occur in developing countries. How to achieve the coordinated development of economic development and environmental protection has become a social hotspot. Based on a panel data including 30 provinces in China from 2000 to 2020, this paper employs panel smooth transition regression_(PSTR) model to examine the impact of financial development on carbon dioxide emissions. The results indicate that the financial development has a nonlinear effect on carbon dioxide emissions. Furthermore, the positive effect of financial development on carbon dioxide emissions is through scale effect and structural effect, especially the latter effect is responsible for up to 183.98%, while the negative effect is through technological effect, which has more space. Moreover, the financial added value, financial scale, financial efficiency, and foreign direct investment are adopted to measure financial development, which the first two indicators show a smooth transition, the other two indexes always show a positive influence.