Resources and environmental costs of China's rapid economic growth: From the latest theoretic SEEA framework to modeling practice

China has been undergoing rapid economic growth since its reform and opening-up at the expense of resource depletion and environmental pollution. We estimated the monetary costs of resource depletion and environmental pollution in China over the past 14 recent years by establishing integrated mathematical models with System for Integrated Environmental and Economic Accounting (SEEA) framework. Results showed four points. Firstly, the total temporal costs of natural resource depletion and environmental pollution witnessed an inverted ‘U’ shape pattern with the turning point in 2012. The relationship between cost of mineral resource depletion, as well as water pollution cost, and per capita GDP were found to follow the Inverted-U shape environmental Kuznets curve (EKC). Secondly, the average annual share of natural resources of the total costs was more than 80%, indicating that the rapid economic growth of China is highly dependent on resource depletion. Thirdly, Although China still has the highest worldwide in its total energy consumption and CO2 emission, China's struggles with adjustment of industrial & energy consumption structure, and pollution controls have resulted in a general temporal decline of the share of resource and environmental costs to China's GDP. The green GDP of China is growing at an average rate of 14.76%. Finally, although in the process of manufactured goods for the whole world, China has reduced environmental pollution and left it at home as much as possible. Driving forces behind the progress in green GDP of China were analyzed by using Differences-in-Differences method and Spearman rank correlation analysis.