Evidence suggests that some pollutants follow an inverse-U-shaped pattern relative to countries' incomes. This relationship has been called the out a simple and straight-forward static model of the microfoundations of the pollution-income relationship. We show that the environmental Kuznets curve can be derived directly from the technological link between consumption of a desired good and abatement of its undesirable byproduct. The inverse-U shape does not depend on the dynamics of growth, political institutions, or even externalities, and can be consistent with a decentralized economy as well as a Pareto efficient policy.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
6739.
Length: Date of creation: Sep 1998 Date of revision: Publication status: published as Andreoni, James and Arik Levinson. "The Simple Analytics Of The Environmental Kuznets Curve," Journal of Public Economics, 2001, v80(2,May), 269-286. Handle: RePEc:nbr:nberwo:6739
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Find related papers by JEL classification: Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General H4 - Public Economics - - Publicly Provided Goods
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Stokey, Nancy L, 1998.
"Are There Limits to Growth?,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February.
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