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A new approach to pollution modelling in models of the environmental Kuznets curve

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Author Info
Hannes Egli () (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH))

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Abstract

Models of the Environmental Kuznets Curve, particularly those with an ex- plicit 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, ¯rst, critically discussing two approaches adopted in existing EKC models and, second, by proposing a new approach. Motivated by the debatable assumption of perpetually increas- ing 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 theo- retical problem of negative pollution, but also does well regarding the empirical plausibility of the abatement technology.

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Publisher Info
Paper provided by CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich in its series CER-ETH Economics working paper series with number 05/39.

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Length: 15 pages
Date of creation: May 2005
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Handle: RePEc:eth:wpswif:05-39

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Related research
Keywords: environmental Kuznets curve; negative pollution; abatement technology; increasing returns to scale;

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Find related papers by JEL classification:
Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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  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. [Downloadable!] (restricted)
    Other versions:
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