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 CO
₂
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.