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.
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Paper provided by Harvard - Institute for International Development in its series Papers with number
701.
Length: 40 pages Date of creation: 1999 Date of revision: Handle: RePEc:fth:harvid:701
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Find related papers by JEL classification: O10 - Economic Development, 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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