The J-Curve for the relationship between Pollution Abatement Expenditure and Income per capita: A New Empirical Investigation from US Regional Data
AbstractThe main objective of our paper is to investigate the validity of the theoretically postulated J type relationship between pollution control expenditures/capita and income/capita. We use the Pollution Abatement Costs and Expenditures dataset to examine the validity of this postulated relationship for the US states during the years 1986 – 1994. Using a flexible nonparametric framework, we do not find any evidence to support the J type relationship between abatement/capita and income/capita for the U.S. economy. We attribute this result to the presence of increasing returns to pollution abatement or increasing marginal efficacy of pollution abatement.
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Bibliographic InfoArticle provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.
Volume (Year): 11 (2011)
Issue (Month): 2 ()
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Web page: http://www.usc.es/economet/eaa.htm
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
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