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A New Approach to Pollution Modelling in Models of the Environmental Kuznets Curve

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  • Hannes Egli

Abstract

Models of the Environmental Kuznets Curve, particularly those with an explicit abatement technology, often involve that pollution becomes negative in the long run. This, of course, is a highly implausible prediction. The paper at hand examines the problem of negative pollution by, first, critically discussing two approaches adopted in existing EKC models and, second, by proposing a new approach. Motivated by the debatable assumption of perpetually increasing returns to scale in abatement, the idea of fading increasing returns to scale is introduced. This procedure does not only constitute a solution to the theoretical problem of negative pollution, but also does well regarding the empirical plausibility of the abatement technology.

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Bibliographic Info

Article provided by Swiss Society of Economics and Statistics (SSES) in its journal Swiss Journal of Economics and Statistics.

Volume (Year): 141 (2005)
Issue (Month): III (September)
Pages: 459-473

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Handle: RePEc:ses:arsjes:2005-iii-7

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Keywords: Environmental Kuznets Curve; Negative Pollution; Abatement Technology; Increasing Returns to Scale;

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Cited by:
  1. Hannes Egli & Thomas Steger, 2007. "A Dynamic Model of the Environmental Kuznets Curve: Turning Point and Public Policy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(1), pages 15-34, January.

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