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Income and the demand for environmental quality

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Author Info
McCONNELL, KENNETH E.

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Abstract

The environmental Kuznets curve (EKC) is an empirical regularity showing how some pollutants increase and then decrease with rising per capita incomes. Popular discussions and models of the EKC emphasize the role of the income elasticity of demand for environmental quality as a driving force for the inverted U-shaped relationship between income and pollutants. This paper explores the role of the income elasticity of demand for environmental quality by decomposing the reduced-form effect of income on pollution, showing that preferences consistent with a positive income elasticity of demand for environmental quality are neither necessary nor sufficient for the EKC. Increasing pollution may occur with increasing income but preferences that would imply a high income elasticity of demand for environmental quality, and decreasing pollution may occur simultaneous with preferences that put lower values on pollution reduction as incomes rise.

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File URL: http://journals.cambridge.org/abstract_S1355770X9700020X
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Publisher Info
Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 2 (1997)
Issue (Month): 04 (November)
Pages: 383-399
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:cup:endeec:v:2:y:1997:i:04:p:383-399_00

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  1. William A. Brock & M. Scott Taylor, 2004. "Economic Growth and the Environment: A Review of Theory and Empirics," NBER Working Papers 10854, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Michael Lamla, 2007. "Long-run Determinants of Pollution: A Robustness Analysis," KOF Working papers 07-164, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
  3. Ghalwash, Tarek, 2006. "Income, Energy Taxation, and the Environment: An Econometric Analysis," UmeÃ¥ Economic Studies 678, Umeå University, Department of Economics. [Downloadable!]
  4. repec:att:wimass:192038 is not listed on IDEAS
  5. Brännlund, Runar & Ghalwash, Tarek & Nordström, Jonas, 2004. "Increased Energy Efficiency and the Rebound Effect: Effects on consumption and emissions," UmeÃ¥ Economic Studies 642, Umeå University, Department of Economics. [Downloadable!]
  6. Brännlund, Runar & Ghalwash, Tarek, 2006. "The income-pollution relationship and the role of income distribution Evidence from Swedish household data," UmeÃ¥ Economic Studies 677, Umeå University, Department of Economics. [Downloadable!]
  7. Strand, Jon, 2003. "Environmental Kuzents curves:Empirical relationships between environmental quality and economic development," Memorandum 04/2002, Oslo University, Department of Economics. [Downloadable!]
  8. Roger Perman & David I. Stern, 1999. "The Environmental Kuznets Curve: Implications of Non-Stationarity," Working Papers in Ecological Economics 9901, Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program. [Downloadable!]
  9. Danny Garcia Callejas, 2006. "The automotive lead Kuznets curve: an analysis of the theory and empirics," Semestre Económico volumen 9, numero 18, UNIVERSIDAD DE MEDELLÍN. [Downloadable!]
  10. Fábio Henrique Granja e Barros & Bernardo Mueller & Jorge Madeira Nogueira, 2007. "Crescimento Econômico E Meio Ambiente: O Que Está Faltando Para Entender O Elo Entre Eles?," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 100, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  11. Jeroen C.J.M. van den Bergh & Marjan W. Hofkes, 1997. "A Survey of Economic Modelling of Sustainable Development," Tinbergen Institute Discussion Papers 97-107/3, Tinbergen Institute. [Downloadable!]
  12. Sedigh, Golnaz, 2008. "Do environmental regulations reduce greenhouse gas emissions? A study on Canadian industries," MPRA Paper 10003, University Library of Munich, Germany. [Downloadable!]
  13. Tarek Ghalwash, 2008. "Demand for Environmental Quality: An Empirical Analysis of Consumer Behavior in Sweden," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 41(1), pages 71-87, September. [Downloadable!] (restricted)
  14. W.A. Brock & M. Scott Taylor, 2003. "The Kindergarten Rule of Sustainable Growth," Public Economics 0303005, EconWPA. [Downloadable!]
    Other versions:
  15. J., AZNAR-MARQUEZ & Jose-Ramon, RUIZ-TAMARIT, 2005. "Demographic Transition Environmental Concern and the Kuznets Curve," Discussion Papers (ECON - Département des Sciences Economiques) 2005001, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
  16. Javier Capó Parrilla, 2009. "Curva de Kuznets ambiental: Evidencia para Europa," CRE Working Papers (Documents de treball del CRE) 2009/3, Centre de Recerca Econòmica (UIB ·"Sa Nostra"). [Downloadable!]
  17. Sigrid Stagl, 1999. "Delinking Economic Growth from Environmental Degradation? A Literature Survey on the Environmental Kuznets Curve Hypothesis," Working Papers geewp06, Vienna University of Economics and B.A. Research Group: Growth and Employment in Europe: Sustainability and Competitiveness. [Downloadable!]
  18. Hauer, Grant & Runge, C. Ford, 2000. "Transboundary Pollution And The Kuznet'S Curve In The Global Commons," Working Papers 14423, University of Minnesota, Center for International Food and Agricultural Policy. [Downloadable!]
  19. Hamilton, Kirk & Dasgupta, Susmita & Pandey, Kiran & Wheeler,David R., 2004. "Air pollution during growth : accounting for governance and vulnerability," Policy Research Working Paper Series 3383, The World Bank. [Downloadable!]
  20. Jordi Roca & Emilio Padilla & Mariona Farré & Vittorio Galletto, 2001. "Economic growth and atmospheric pollution in Spain: discussing the environmental Kuznets curve by hypothesis," Working Papers wp0101, Department of Applied Economics at Universitat Autonoma of Barcelona. [Downloadable!]
  21. Seth Binder & Eric Neumayer, 2003. "Environmental Pressure Group Strength and Air Pollution: An Empirical Analysis," Others 0312003, EconWPA, revised 25 Oct 2004. [Downloadable!]
    Other versions:
  22. Bousquet, Alain & Favard, Pascal, 2000. "Does S. Kuznets' Belief Question the Environment Kuznets Curves?," IDEI Working Papers 107, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  23. Danny Garcia Callejas, 2006. "The automotive lead Kuznets curve: an analysis of the theory and empirics," Revista Semestre Economico, UNIVERSIDAD DE MEDELLÍN. [Downloadable!]
  24. David I. Stern, 2003. "The Rise and Fall of the Environmental Kuznets Curve," Rensselaer Working Papers in Economics 0302, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
    Other versions:
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