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The Ups and Downs of the Environmental Kuznets Curve

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Abstract

By now the observation that some pollutants appear to increase and then decrease with economic development has become a widely accepted stylized fact. This paper argues that the fundamental insight of the empirical literature is merely that pollution does not necessarily increase with economic growth, and that the fundamental insight of the theoretical literature is that the observed inverse-U-shaped pollution-income relationship is neither necessary nor sufficient for Pareto-efficient environmental policies. Furthermore, the inverse-U-shaped path is not unique to environmental phenomenon, and may exist wherever a desirable good generates an undesirable side-effect. Finally, all of these points can be made without most of the econometric or theoretical mechanics that fill this literature.

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File URL: http://www8.georgetown.edu/departments/economics/pdf/0108.pdf
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Bibliographic Info

Paper provided by Georgetown University, Department of Economics in its series Working Papers with number gueconwpa~01-01-08.

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Date of creation: 08 Jan 2001
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Handle: RePEc:geo:guwopa:gueconwpa~01-01-08

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Postal: Georgetown University Department of Economics Washington, DC 20057-1036
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Postal: Marcia Suss Administrative Officer Georgetown University Department of Economics Washington, DC 20057-1036
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Web: http://econ.georgetown.edu/

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References

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  1. Marzio Galeotti & Alessandro Lanza, 1999. "Desperately Seeking (Environmental) Kuznets," Working Papers 1999.2, Fondazione Eni Enrico Mattei.
  2. Beverly Hirtle, 2008. "Credit derivatives and bank credit supply," Staff Reports 276, Federal Reserve Bank of New York.
  3. David F. Bradford & Rebecca Schlieckert & Stephen H. Shore, 2000. "The Environmental Kuznets Curve: Exploring A Fresh Specification," NBER Working Papers 8001, National Bureau of Economic Research, Inc.
  4. William T. Harbaugh & Arik Levinson & David Molloy Wilson, 2002. "Reexamining The Empirical Evidence For An Environmental Kuznets Curve," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 541-551, August.
  5. Torras, Mariano & Boyce, James K., 1998. "Income, inequality, and pollution: a reassessment of the environmental Kuznets Curve," Ecological Economics, Elsevier, vol. 25(2), pages 147-160, May.
  6. Taskin, Fatma & Zaim, Osman, 2000. "Searching for a Kuznets curve in environmental efficiency using kernel estimation," Economics Letters, Elsevier, vol. 68(2), pages 217-223, August.
  7. Selden Thomas M. & Song Daqing, 1995. "Neoclassical Growth, the J Curve for Abatement, and the Inverted U Curve for Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 162-168, September.
  8. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
  9. Pingo Wang & Alok Bohara & Robert Berrens & Kishore Gawande, 1998. "A risk-based environmental Kuznets curve for US hazardous waste sites," Applied Economics Letters, Taylor & Francis Journals, vol. 5(12), pages 761-763.
  10. Larry E. Jones & Rodolfo E. Manuelli, 2000. "Endogenous policy choice: the case of pollution and growth," Staff Report 276, Federal Reserve Bank of Minneapolis.
  11. James Andreoni & Arik Levinson, 1998. "The Simple Analytics of the Environmental Kuznets Curve," NBER Working Papers 6739, National Bureau of Economic Research, Inc.
  12. Kahn, Matthew E., 1998. "A household level environmental Kuznets curve," Economics Letters, Elsevier, vol. 59(2), pages 269-273, May.
  13. Suri, Vivek & Chapman, Duane, 1998. "Economic growth, trade and energy: implications for the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 25(2), pages 195-208, May.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Modelo de Robinson Crusoé Sustentável
    by Guilherme Byrro Lopes in Economia e Finanças Fáceis on 2011-08-27 12:00:00
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Cited by:
  1. Marzio Galeotti & Matteo Manera & Alessandro Lanza, 2006. "On the Robustness of Robustness Checks of the Environmental Kuznets Curve," UNIMI - Research Papers in Economics, Business, and Statistics unimi-1027, Universitá degli Studi di Milano.
  2. Nektarios Aslanidis & Anastasios Xepapadeas, . "Regime Switching and the Shape of the," Working Papers 0206, University of Crete, Department of Economics, revised 31 Mar 2003.
  3. Kuhl Teles, Vladimir & Arraes, Ronaldo A., 2009. "Environmental protection and economic growth," Textos para discussão 194, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).
  4. Nektarios Aslanidis, 2009. "Environmental Kuznets Curves for Carbon Emissions: A Critical Survey," Working Papers 2009.75, Fondazione Eni Enrico Mattei.
  5. Aslanidis Nektarios, 2009. "Environmental Kuznets curves for carbon emissions: A critical survey," wp.comunite 0051, Department of Communication, University of Teramo.
  6. Lee J. Alston & Bernardo Mueller, 2007. "Legal Reserve Requirements in Brazilian Forests: Path Dependent Evolution of De Facto Legislation," Economia, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 8(4), pages 25_53.
  7. Marzio Galeotti & Matteo Manera & Alessandro Lanza, 2009. "On the Robustness of Robustness Checks of the Environmental Kuznets Curve Hypothesis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 42(4), pages 551-574, April.
  8. Nektarios Aslanidis & Anastasios Xepapadeas, 2004. "Smooth ‘inverted-V-shaped’ & smooth ‘N-shaped’ pollution-income paths," Working Papers 0405, University of Crete, Department of Economics.
  9. Anil Markandya & Alexander Golub & Suzette Pedroso-Galinato, 2006. "Empirical Analysis of National Income and SO 2 Emissions in Selected European Countries," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 35(3), pages 221-257, November.

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