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Due to the increase in urbanisation and industrialisation, the social economy is also developing rapidly. Due to development, the protecting natural resources have become difficult and also there has been a lot of pressure for protecting the environment (Liu, 2011). Because of the exploitation of natural resources, the industrial pollutants are getting emitted. As the industry grows, there is a degradation effect on environmental quality. In some cases, it is said that business growth has a positive impact in protecting the environment (Omisakin A., 2010). Two things i.e. business growth and environmental protection are mutually related with each other. Both business growth and environmental protection have not yet found out any definite relationship till now. For this, the study needs to be analysed for further research. According to the economic powerful province, both business growth and environmental protection have some useful meaning. Depending on empirical research of both business growth and environmental protection relationship, this study is more concern on the evolution law of both business growth and environment protection (Omisakin A., 2010; Liu L., 2009). With the help of evolution law, one can find the proper meaning, guidance and references for the developing provinces of business growth and environmental protection. Business growth and environmental protection are closely related to each other which indicate that the overall development of human beings is due to business growth and environmental protection. IUCN, WWF and UNEP are said to be to a good platform for providing debate on the development of economy and environment internationally (Day K. M., 2011). In this report, term sustainable development has been defined. The development that is done without affecting the future need in order to meet the present scenario is called sustainable development. There are different types of dimension present that are required for sustainable development such as the social dimension, environment dimension and business or economy dimension (Stern D. I., 2009). In this chapter, the relationship between business growth and environmental protection is discussed (Grossman G. and Krueger, 2013). The main issue that has been a barrier to business development in the world is called environmental degradation. The degradation is caused due to the growth in the business sector which degrades the environmental circumstances. There is high complexity in the relationship between business growth and environmental protection. Nowadays, business growth is affecting the sustainability of environment intensively (Liu L., 2009). In order to avoid environmental degradation, the manufacturing units need to remove greenhouse gases i.e. carbon-dioxide, Chlorofluorocarbon (CFC), etc. These gases can cause global warming due to the emission of gases randomly and can also affect the parts of the ecological system (Cole M., 2009). To avoid all these circumstances, the countries have decided to take some major actions in order to protect the environment from all harmful effects. At the same time, the country will look toward the development of the business sector for the welfare of the economy. This research aim is to identify and fix the issues which are a barrier in the relationship of business growth and environmental protection.
In this section, we are going to discuss empirical findings of the different authors regarding the relationship between business growth and environmental protection and also discuss on the environmental Kuznets curve (Liu L., 2009).
In the year 1960, the impact of business growth on environment protection was analysed based on the principle known as mass conversation. According to the mass conversation principle, the growth of output in the business system will cause exploitation in environmental resources and wastage that is being discharged is also increasing (Stern D. I., 2009). Due to an increase in the amount of waste, it is directly affecting the environment. As we know, the environment has limited power for absorbing the waste that is being produced from the business system. Due to this reason, the growth in business is not sustainable anymore. To find the relationship between business growth and environmental protection, the scholars had done many types of research-based mainly on the impact of business growth on environment protection. Out of these many types of research, the one that was most important was the proposition of EKC (Environmental Kuznets Curve) along with their empirical research (Liang J., 2010). According to Researchers, the reverse 'U' represents a relationship between business growth and environmental protection. The curve indicates that due to lower growth in business, the environment was less protected (Grossman G. and Krueger, 2013). The environment pollution gets increases with respect to industrialisation. In order to have growth in the business sector, the industry needs to meet the customer needs and improve their production. Due to the dynamic world, the enterprises need different technologies to improve their production. At the same time, the process of manufacturing needs to be increased in the business organisation for the operation of production (Liu, 2011). In turn, more and more polluting elements are getting emitted rapidly into the environment. Due to the emission of polluting elements, the level of global warming was getting increased. In some countries, they have already taken action in order to protect their environment from the polluting elements. At the same time, they have prohibited few businesses to get developed for the safety of the environment. From the above theory, it was found that there exists a relation between business growth and environmental sustainability (Liang J., 2010).
More reviews on Environment Kuznets Curve's literature needs to be discussed. First, it was assumed there exist a relation in EKC. Later, this assumption was validated using different information and methods. Western Scholars used cross-sectional and panel information and also used the quadratic and cubical polynomial model for validating the EKC. The research was analysed using the time-series data of a single country which was few (Stern D. I., 2009). In most of the studies, the time-series data were fitted to cubic polynomial or quadratic model and then used to find the point of inflexion. In all these empirical studies, Researchers used always classical regression hypothesis model (Peng L., 2013). This model was used either in panel data or cross-sectional data or time series data for analysis and also avoided the predictions that the variables should be stationary. It was concluded that the regression used was spurious regression. The study was mainly focused on the effect of business growth on environment protection (Liu L., 2009).
