Explaining Environmental Kuznets Curves: How Pollution Induces Policy and New Technologies
AbstractProduction often causes pollution as a by-product.Once pollution problems become too severe, regulation is introduced by political authorities which forces the economy to make a transition to cleaner production processes.We model this transition as a change in "general purpose technology" (GPT) and investigate how it interferes with economic growth driven by quality-improvements.The model gives an explanation for the inverted U-shaped relationship found in empirical research for many pollutants, often referred to as the Environmental Kuznets Curve (EKC).We provide an analytical foundation for the claim that the rise and decline of pollution can be explained by policy-induced technology shifts. KKeywords: pollution; environmental policy; technological change; economic growth;
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2000-95.
Date of creation: 2000
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- Bretschger, Lucas & Smulders, Sjak, 2000. "Explaining environmental Kuznets curves: How pollution induces policy and new technologies," Wirtschaftswissenschaftliche Diskussionspapiere 12/2000, Ernst Moritz Arndt University of Greifswald, Faculty of Law and Economics.
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
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