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Unveiling the Income-Environment Relationship: An Exploration into the Determinants of Environmental Quality

Author

Listed:
  • Islam, N.
  • Vincent, J.

Abstract

This paper decomposes the reduced form income-environment relationship into its structural sources. It identifies a level effect, a composition effect, and an abatement effect. This decomposition is implemented using global data on suspended particulate matter in the air. The level and composition effects are found to conform to their a priori expected linear and quadratic forms, respectively. The abatement effect is found to be generally downward sloping, though not exactly conforming to the expected inverted-J shape.

Suggested Citation

  • Islam, N. & Vincent, J., 1999. "Unveiling the Income-Environment Relationship: An Exploration into the Determinants of Environmental Quality," Papers 701, Harvard - Institute for International Development.
    • Handle: RePEc:fth:harvid:701
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    Citations

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    Cited by:

    1. Dutta, Dilip & Ghosh, Paritosh Chandra, 2003. "Re-examining Economic Growth-Environment Relationship: Evidence from High-, Medium- And Low-Income Countries," Working Papers 3, University of Sydney, School of Economics.
    2. Goodness C. Aye & Prosper Ebruvwiyo Edoja, 2017. "Effect of economic growth on CO2 emission in developing countries: Evidence from a dynamic panel threshold model," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1379239-137, January.
    3. Nasreen, Samia & Anwar, Sofia & Ozturk, Ilhan, 2017. "Financial stability, energy consumption and environmental quality: Evidence from South Asian economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1105-1122.
    4. Shokoohi, Zeinab & Dehbidi, Navid Kargar & Tarazkar, Mohammad Hassan, 2022. "Energy intensity, economic growth and environmental quality in populous Middle East countries," Energy, Elsevier, vol. 239(PC).
    5. Di Vita, Giuseppe, 2008. "Differences in pollution levels among civil law countries: A possible interpretation," Energy Policy, Elsevier, vol. 36(10), pages 3774-3786, October.
    6. Marzio Galeotti, 2007. "Economic Growth And The Quality Of The Environment: Taking Stock," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 9(4), pages 427-454, November.
    7. Dutta, Dilip & Ghosh, Paritosh Chandra, 2003. "A Structural Analysis of Economic Growth-Environment Relationship under Economic Openness," Working Papers 4, University of Sydney, School of Economics.
    8. Bright O. Osu & Chidi U. Okonkwo & Rosemary N.Ujumadu, 2016. "The Relationship between GDP and Co2 Emission in Nigeria Using the Least Square Polynomials," Academic Journal of Applied Mathematical Sciences, Academic Research Publishing Group, vol. 2(6), pages 51-55, 06-2016.
    9. Di Vita, Giuseppe, 2009. "Legal families and environmental protection: Is there a causal relationship?," Journal of Policy Modeling, Elsevier, vol. 31(5), pages 694-707, September.
    10. Sabrina Auci & Giovanni Trovato, 2018. "The environmental Kuznets curve within European countries and sectors: greenhouse emission, production function and technology," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(3), pages 895-915, December.
    11. Bagliani, Marco & Bravo, Giangiacomo & Dalmazzone, Silvana, 2008. "A consumption-based approach to environmental Kuznets curves using the ecological footprint indicator," Ecological Economics, Elsevier, vol. 65(3), pages 650-661, April.
    12. Busra Agan & Mehmet Balcilar, 2022. "On the Determinants of Green Technology Diffusion: An Empirical Analysis of Economic, Social, Political, and Environmental Factors," Sustainability, MDPI, vol. 14(4), pages 1-23, February.
    13. Shahid ALI & Maryam BIBI & Fazli RABBI, 2014. "A New Economic Dimension to the Environmental Kuznets Curve: Estimation of Environmental Efficiency in Case of Pakistan," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(1), pages 68-79, January.
    14. Xepapadeas, Anastasios, 2005. "Economic growth and the environment," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 3, chapter 23, pages 1219-1271, Elsevier.
    15. Jaunky, Vishal Chandr, 2011. "The CO2 emissions-income nexus: Evidence from rich countries," Energy Policy, Elsevier, vol. 39(3), pages 1228-1240, March.
    16. Cuma Bozkurt & Yusuf Akan, 2014. "Economic Growth, CO2 Emissions and Energy Consumption: The Turkish Case," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 484-494.
    17. Marzio Galeotti, 2003. "Economic Development and Environmental Protection," Working Papers 2003.89, Fondazione Eni Enrico Mattei.
    18. Chuku, Agbai, 2011. "Economic development and environmental quality in Nigeria: is there an environmental Kuznets curve?," MPRA Paper 30195, University Library of Munich, Germany.
    19. Theodore Panayotou, 2000. "Economic Growth and the Environment," CID Working Papers 56A, Center for International Development at Harvard University.
    20. Atwi, Majed & Barberán, Ramón & Mur, Jesús & Angulo, Ana, 2018. "CO2 Kuznets Curve Revisited: From Cross-Sections to Panel Data Models," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 40, pages 169-196.
    21. Du, Xiuying & Xie, Zixiong, 2020. "Occurrence of turning point on environmental Kuznets curve in the process of (de)industrialization," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 359-369.
    22. Lingyan Xu & Jing Jiang & Mengyi Lu & Jianguo Du, 2022. "Spatial-Temporal Evolution Characteristics of Agricultural Intensive Management and Its Influence on Agricultural Non-Point Source Pollution in China," Sustainability, MDPI, vol. 15(1), pages 1-22, December.
    23. Charfeddine, Lanouar & Mrabet, Zouhair, 2017. "The impact of economic development and social-political factors on ecological footprint: A panel data analysis for 15 MENA countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 138-154.
    24. Vania Andreoli & Marco Bagliani & Alessandro Corsi & Vito Frontuto, 2021. "Drivers of Protein Consumption: A Cross-Country Analysis," Sustainability, MDPI, vol. 13(13), pages 1-19, July.
    25. Neagu Olimpia & Ardelean Doru Ioan & Lazăr Vasile, 2017. "How is environmental performance associated with economic growth? A world cross-country analysis," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 27(3), pages 15-32, September.

    More about this item

    Keywords

    AIR POLLUTION;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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