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Income and environmental R D: empirical evidence from OECD countries

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  • KOMEN, MARINUS H.C.
  • GERKING, SHELBY
  • FOLMER, HENK

Abstract

This paper extends previous empirical studies of the environmental Kuznets curve by examining the role of rising incomes in promoting development of new technologies directed toward environmental improvements. The main result, based on an analysis of data from 19 OECD countries for the period 1980 94, shows that the income elasticity of public research and development funding for environmental protection is positive, and may be close to unity. This finding suggests that emissions of at least some pollutants may decline with income after a threshold level of income is reached. However, this should be interpreted cautiously in light of: (1) the small size of public research and development funding relative to overall spending on environmental protection, (2) the ability of a country to substitute between public and private research and development expenditures, as well as among alternative policy instruments, and (3) the possibility that public research and development funding may be a form of industrial subsidy in some countries.

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Bibliographic Info

Article provided by Cambridge University Press in its journal Environment and Development Economics.

Volume (Year): 2 (1997)
Issue (Month): 04 (November)
Pages: 505-515

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Handle: RePEc:cup:endeec:v:2:y:1997:i:04:p:505-515_00

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Cited by:
  1. Simone Borghesi, 1999. "The Environmental Kuznets Curve: a Survey of the Literature," Working Papers, Fondazione Eni Enrico Mattei 1999.85, Fondazione Eni Enrico Mattei.
  2. Xiaodong Wu, 2000. ""Pollution Havens" and the Regulation of Multinationals by Multiple Governments," Econometric Society World Congress 2000 Contributed Papers, Econometric Society 1766, Econometric Society.
  3. 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], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Gr 100, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  4. Edward B. Barbier, 2003. "The Role of Natural Resources in Economic Development," Australian Economic Papers, Wiley Blackwell, Wiley Blackwell, vol. 42(2), pages 253-272, 06.
  5. Marzio Galeotti, 2003. "Economic Development and Environmental Protection," Working Papers, Fondazione Eni Enrico Mattei 2003.89, Fondazione Eni Enrico Mattei.
  6. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, Elsevier, vol. 49(4), pages 431-455, August.
  7. Dinda, Soumyananda & Coondoo, Dipankor & Pal, Manoranjan, 2000. "Air quality and economic growth: an empirical study," Ecological Economics, Elsevier, Elsevier, vol. 34(3), pages 409-423, September.
  8. Stern, David I., 2002. "Explaining changes in global sulfur emissions: an econometric decomposition approach," Ecological Economics, Elsevier, Elsevier, vol. 42(1-2), pages 201-220, August.
  9. Lau, Lin-Sea & Choong, Chee-Keong & Eng, Yoke-Kee, 2014. "Investigation of the environmental Kuznets curve for carbon emissions in Malaysia: Do foreign direct investment and trade matter?," Energy Policy, Elsevier, Elsevier, vol. 68(C), pages 490-497.
  10. Thomas, Vinod & Wang, Yan & Fan, Xibo, 2001. "Measuring education inequality - Gini coefficients of education," Policy Research Working Paper Series 2525, The World Bank.
  11. David I. Stern, 1996. "Progress on environmental Kuznets curves," Working Papers in Ecological Economics, Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program 9601, Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program.
  12. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve: An Envelope of Technological Progress," MPRA Paper 28092, University Library of Munich, Germany, revised May 2010.
  13. Carlos A. Flores & Alfonso Flores-Lagunes & Dimitrios Kapetanakis, 2009. "Lessons from Quantile Panel Estimation of the Environmental Kuznets Curve," Working Papers, University of Miami, Department of Economics 2010-4, University of Miami, Department of Economics.
  14. Raghbendra Jha & John Whalley, 2001. "The Environmental Regime in Developing Countries," NBER Chapters, in: Behavioral and Distributional Effects of Environmental Policy, pages 217-250 National Bureau of Economic Research, Inc.
  15. David I. Stern, 1999. "Attributing Changes in Global Sulfur Emissions," Working Papers in Ecological Economics, Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program 9902, Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program.
  16. Frank, Joshua, 2008. "Is there an "animal welfare Kuznets curve"?," Ecological Economics, Elsevier, Elsevier, vol. 66(2-3), pages 478-491, June.
  17. Dinda, Soumyananda, 2011. "Carbon emission and production technology: evidence from the US," MPRA Paper 31935, University Library of Munich, Germany, revised 30 Jun 2011.
  18. Ciriaci, Daria & Palma, Daniela, 2010. "Geography, environmental efficiency and Italian economic growth: a spatially-adapted Environmental Kuznets Curve," MPRA Paper 22899, University Library of Munich, Germany.
  19. Dimitrios Varvarigos & Intan Zanariah Zakaria, 2011. "Growth and Demographic Change: Do Environmental Factors Matter?," Discussion Papers in Economics, Department of Economics, University of Leicester 11/46, Department of Economics, University of Leicester.
  20. Azmat Gani, 2012. "The Relationship Between Good Governance And Carbon Dioxide Emissions: Evidence From Developing Economies," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, Chung-Ang Unviersity, Department of Economics, vol. 37(1), pages 77-93, March.
  21. Don J Webber & David O Allen, 2004. "Environmental Kuznets Curves: Mess or Meaning?," Working Papers 0406, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
  22. Justin Tevie & Kristine M. Grimsrud & Robert P. Berrens, 2011. "Testing the Environmental Kuznets Curve Hypothesis for Biodiversity Risk in the US: A Spatial Econometric Approach," Sustainability, MDPI, Open Access Journal, vol. 3(11), pages 2182-2199, November.
  23. Kijima, Masaaki & Nishide, Katsumasa & Ohyama, Atsuyuki, 2010. "Economic models for the environmental Kuznets curve: A survey," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 34(7), pages 1187-1201, July.

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