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Endogenous Water System Pollution Kuznets Curve in China

Based on the data of river cross section water quality in China from 2002 to 2011, we analyze the interrelationship between economic growth and water pollution. The results reveal that water environment will deteriorate with economic growth currently. Openness has no significant effect on pollution. Pollution heaven hypothesis is not true due to environmental regulation. Positive structure effect relies heavily on the substitution of industry. Excellence in environment quality brings more tolerance of exhaustion than productivity to economic growth.