A Dynamic Model of the Environmental Kuznets Curve: Turning Point and Public Policy
AbstractWe set up a simple dynamic macroeconomic model with (i) polluting consumption and a preference for a clean environment, (ii) increasing returns in abatement giving rise to an EKC and (iii) sustained growth resulting from a linear final-output technology. There are two sorts of market failures caused by external effects associated with consumption and environmental effort. The model is employed to investigate the determinants of the turning point and the cost effectiveness of different public policies aimed at a reduction of the environmental burden. Moreover, the model offers a potential explanation of an N-shaped pollution–income relation. It is shown that the model is compatible with most empirical regularities on economic growth and the environment. Copyright Springer Science+Business Media, Inc. 2007
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 36 (2007)
Issue (Month): 1 (January)
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Web page: http://www.springerlink.com/link.asp?id=100263
abatement; economic growth; environmental Kuznets curve; external effects; pollution; public policy; Q5; O4;
Other versions of this item:
- Hannes Egli & Thomas M. Steger, 2004. "A Dynamic Model of the Environmental Kuznets Curve : Turning Point and Public Poliy," CER-ETH Economics working paper series 04/33, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich, revised May 2005.
- Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
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