Modeling and Analysis of the Influence of Environmental Pollution on Chemical Economy.

Taking Shanxi as an example, based on the estimation of VAR model, the dynamic relationship between chemical economy and environmental pollution in Shanxi from 1985 to 2006 was empirically studied by using generalized impulse response function and variance decomposition. The conclusion shows that Shanxi, as the national energy and heavy chemical industry base, does have a two-way mechanism of chemical economic growth and environmental pollution, but the reaction mechanism of environmental pollution to chemical economic growth is much weaker. There is a dynamic inverted U-shaped relationship between chemical economic growth and environmental pollution, and some characteristics of chemical economic growth and environmental pollution in Shanxi Province are also found. [ABSTRACT FROM AUTHOR]