Author(s): Ren Shijia, Yin Xiuqing, Hu Zibo

Abstract: The historical data of industrial value added and industrial pollution control investment in sample area of Shandong Province from 2005 to 2018 were selected as the measurement samples, and the long-term investment in industrial added value and industrial pollution control was tested by co-integration test, error correction model and Granger causality test. Equilibrium relationships and short-term dynamic effects are studied. The results show that the investment amount of industrial pollution control investment for treating wastewater and waste gas has a long-term equilibrium relationship with industrial added value; for every 1% increase of industrial pollution wastewater treatment investment, industrial added value increases by 0.09%; industrial pollution waste gas treatment investment For every 1% increase in the amount, the industrial added value will decrease by 0.03%.Granger test results show that industrial added value and industrial wastewater treatment investment, industrial waste gas treatment investment are independent of each other, there is no Granger causal relationship.

Keywords: industrial development; industrial pollution; co-integration test; Granger causality.

DOI: 10.22161/ijels.4.3.29