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Economic growth and the diffusion of clean technologies : explaining environmental Kuznets Author info | Abstract | Publisher info | Download info | Related research | Statistics Sjak Smulders () (Tilburg University, Department of Economics)
Lucas Bretschger () (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH) )
Hannes Egli () (Institute of Economic Research (WIF), Swiss Federal Institute of Technology Zurich (ETH) )
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Production often causes pollution as a by-product. Once environmental degra- dation becomes too severe, regulation is introduced by which society forces the economy to make a transition to cleaner production processes. We model this transition as a change in "general purpose technology" and investigate how it interferes with economic growth driven by quality-improvements. The model gives an explanation for the inverted U-shaped pollution-income relation found in empirical research for many pollutants (Environmental Kuznets Curve). We provide an analytical foundation for the claim that the rise and decline of pol- lution can be explained by policy-induced technology shifts and intrasectoral changes.
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Paper provided by CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich in its series Economics working paper series with number
05/42.
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Length: 26 pages
Date of creation: Aug 2005Date of revision:
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Keywords: Environmental Kuznets curve general purpose technology growth intrasectoral shifts Other versions of this item:
Find related papers by JEL classification: 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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