Abstract: Based on environmental Kuznets curve, the structual adjustment factor is added to study the effects of Chinese economic development and industrial sructure to carbon emission. Panel data of China’s 30 provinces between 2000 to 2009 is used and the entity fixed effects model is established. The main findings are as follows: there is a long equilibrium cointegration relationship between carbon emission, economic development and industrial structure respectively. An inverted U curve is presented between carbon emission and economic development, if per capita GDP is 64585 yuan, the curve will meet its knee point. A direct ratio exists in carbon emission by the secondary sector, when it decreases by 1%, the per carpita carbon emission decreases by 0.3217% on the condition of per capita GDP unchanged, which means that industrial structure adjustment is an important factor affecting the low carbon economy development. In order to develop low carbon economy, it is good to start from the high carbon industry and use technology to change it into the low carbon industry. In addition, to develop the third industry is a good way to decrease the dependence on the second industry gradually.

Key words: economy increasing, industrial structure, carbon emission, panel data model