Abstract: In order to analyze whether the coordinated development of economy and environment can be realized, this paper firstly introduces the factors of resource and environment into an endogenous economic growth model, and analyzes whether sustainable development can be realized and the achieving conditions by using optimal control method. Based on the model analysis, the paper next uses Chinese 30 provinces' CO₂ emissions data from 1995 to 2011to test econometrically the EKC hypothesis through establishing simultaneous equation model and using 3SLS method. The results indicate that: (1) when consumption intertemporal substitution elasticity and other variables satisfy certain conditions, the coordinated development of economy and environment can be realized. (2) Although at present economic growth is positively correlated with CO₂ emissions, we still find the evidence substantiating the presence of EKC hypothesis, namely the coordinated development of economy and carbon emissions can finally be realized in China. (3) The industrial structure, trade openness and urbanization level have negative impacts on carbon emissions, but energy intensity, primary energy consumption structure and environmental regulation are just the opposite. Energy intensity is the key influencing factor for China's CO₂ emissions.

Key words: environment, CO₂ emissions, economic growth, coordinated development, Environmental Kuznets curve (EKC)