With the rapid growth of economy, the environmental pollution problem is becoming increasingly prominent. How to promote the coordinated and balanced development of economy and environment is a strategic problem of great significance that we face urgently. Taking Wuhan City of China as the research object, this paper selects the key indexes of economic growth and environmental pollution and studies the interactive influence between economic growth and environmental pollution in Wuhan. On the one hand, the impact of Wuhan's economic growth on environmental pollution is analyzed by the proposed time-delay correlation analysis method and the time-delay EKC (Environment Kuznets Curve) models. On the other hand, the impact of Wuhan's environmental pollution on environmental growth is studied. By establishing the LARS-LASSO (least angle regression-least absolute shrinkage and selection operator) regression model and the stepwise regression model, the main factors affecting economic growth in preliminary environmental pollution indexes are analyzed, and then, an interaction model is established to study the impact of the interaction between any two main environmental factors on economic growth. The results of empirical analysis show that the main factors affecting economic growth are industrial wastewater emissions, industrial waste gas emissions, and industrial smoke and dust emissions, and the interaction between industrial waste gas emissions and industrial wastewater emissions restrains economic growth.
Keywords: Economic growth; Environmental Kuznets theory; Environmental pollution; Interaction model; LARS-LASSO regression.