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Is Economic Growth Sustainable? Environmental Quality Of Indian States Post 1991

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  • Sacchidananda Mukherjee

    (MSE)

  • Vinish Kathuria

Abstract

This study is an attempt to investigate the relationship between environmental quality and per capita NSDP (i.e., Environment Kuznets Curve, EKC) of 14 major Indian States in the light of their very high economic growth in the post-liberalisation period. The analysis involves first ranking the States on the basis of their environmental quality, and then checking the relationship. The analysis captures both temporal and spatial aspects of environmental quality by ranking the States in two time periods (i) early 1990s (1990 - 1996) and (ii) late 1990s (1997 - 2001). The results indicate that the relationship between environmental quality and per capita NSDP is slanting S-shaped. Except Bihar all other States are on the upward sloping curve of the EKC. The results suggest that the economic growth is mostly at the cost of environmental quality.

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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 22504.

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Date of creation: Jan 2006
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Handle: RePEc:eab:develo:22504

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Keywords: Environmental Quality; per capita NSDP; economic growth; post-liberalisation period; S-shape; Environment Kuznets Curve; economic growth;

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  1. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
  2. Jha, Raghbendra & Murthy, K. V. Bhanu, 2003. "An inverse global environmental Kuznets curve," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 352-368, June.
  3. CARSON, RICHARd T. & JEON, YONGIL & McCUBBIN, DONALD R., 1997. "The relationship between air pollution emissions and income: US Data," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 433-450, November.
  4. James Andreoni & Arik Levinson, 1998. "The Simple Analytics of the Environmental Kuznets Curve," NBER Working Papers 6739, National Bureau of Economic Research, Inc.
  5. de Bruyn, S. M. & van den Bergh, J. C. J. M. & Opschoor, J. B., 1998. "Economic growth and emissions: reconsidering the empirical basis of environmental Kuznets curves," Ecological Economics, Elsevier, vol. 25(2), pages 161-175, May.
  6. Annegrete Bruvoll & Hege Medin, 2003. "Factors Behind the Environmental Kuznets Curve. A Decomposition of the Changes in Air Pollution," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(1), pages 27-48, January.
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