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On a clear day you might see an environmental Kuznets curve

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Author Info
Per-Olov Johansson ()
Bengt Kriström
Abstract

We shed some new light on the Environmental Kuznets curve (EKC) and show how it can be viewed as a particular form of equilibrium relationship, where technology and preference parameters determine the shape of the curve. In contrast to most of the literature on the EKC, we estimate a theoretically consistent model on long-run data (Swedish sulfur emission, covering the period 1900–2002). Furthermore, we test and date structural change. The model suggests four regimes, 1900–1918, 1919–1933, 1934–1967 and 1968–2002, generating four rather different patterns for pollution over time. The policy-conclusions are consonant with Pearce’s general view about the EKC: there is no theoretical presumption that it has an inverted U shape, nor should any country try to “grow out of the environmental problems” without analyzing the benefits and costs of so doing. Copyright Springer Science+Business Media, Inc. 2007

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File URL: http://hdl.handle.net/10.1007/s10640-007-9112-9
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 37 (2007)
Issue (Month): 1 (May)
Pages: 77-90
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:enreec:v:37:y:2007:i:1:p:77-90

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Web page: http://www.springerlink.com/link.asp?id=100263

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Related research
Keywords: Kuznets; Pollution; General equilibrium; Structural breaks; Long run data (1900–2002);

References listed on IDEAS
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  1. Shafik, Nemat & Bandyopadhyay, Sushenjit, 1992. "Economic growth and environmental quality : time series and cross-country evidence," Policy Research Working Paper Series 904, The World Bank. [Downloadable!]
  2. repec:att:wimass:1920416 is not listed on IDEAS
  3. Gene M. Grossman & Alan B. Krueger, 1994. "Economic Growth and the Environment," NBER Working Papers 4634, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Stokey, Nancy L, 1998. "Are There Limits to Growth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February.
  5. Hartman, Richard & Kwon, O-Sung, 2005. "Sustainable growth and the environmental Kuznets curve," Journal of Economic Dynamics and Control, Elsevier, vol. 29(10), pages 1701-1736, October. [Downloadable!] (restricted)
  6. Andreoni, James & Levinson, Arik, 2001. "The simple analytics of the environmental Kuznets curve," Journal of Public Economics, Elsevier, vol. 80(2), pages 269-286, May. [Downloadable!] (restricted)
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  7. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August. [Downloadable!] (restricted)
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  8. Reis, Ana Balcao, 2001. "Endogenous Growth and the Possibility of Eliminating Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 360-373, November. [Downloadable!] (restricted)
  9. William A. Brock & M. Scott Taylor, 2004. "The Green Solow Model," NBER Working Papers 10557, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Jushan Bai & Pierre Perron, 2003. "Computation and analysis of multiple structural change models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(1), pages 1-22. [Downloadable!]
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  11. Florenz Plassmann & Neha Khanna, 2006. "Preferences, Technology, and the Environment: Understanding the Environmental Kuznets Curve Hypothesis," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(3), pages 632-643, 08. [Downloadable!] (restricted)
  12. Jushan Bai & Pierre Perron, 1998. "Estimating and Testing Linear Models with Multiple Structural Changes," Econometrica, Econometric Society, vol. 66(1), pages 47-78, January.
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  13. Anton Nahman & Geoff Antrobus, 2005. "The Environmental Kuznets Curve: A Literature Survey," South African Journal of Economics, Economic Society of South Africa, vol. 73(1), pages 105-120, 03. [Downloadable!] (restricted)
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