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Environmental Kuznets Curve: An Envelope of Technological Progress

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  • Dinda, Soumyananda

Abstract

This paper develops a growth model to provide a theoretical explanation of the environmental Kuznets curve (EKC). Paper explains how EKC is shaped with economic development for a given technology. The EKC result arises in two ways – it can be observed from a single technology that matures and it can be observed as an economy develops new technologies. This second effect is represented as an envelope of Kuznets curves for technologies. This paper provides an interesting application of growth theory and of the envelope theorem. In economic development process, technology first diffuses, then become regulated and finally is phased out by another new technology. Thus, each technology may produce one EKC corresponding to a definite externality. Theoretically, a series of EKCs may exist and an envelope of them is observed in reality.

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File URL: http://mpra.ub.uni-muenchen.de/28092/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 28092.

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Date of creation: Jan 2004
Date of revision: May 2010
Handle: RePEc:pra:mprapa:28092

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Related research

Keywords: Technological development; Innovation; Diffusion; Pollution sensitivity; regulation; EKC; social institution;

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References

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  3. Khanna, Neha, 2002. "The income elasticity of non-point source air pollutants: revisiting the environmental Kuznets curve," Economics Letters, Elsevier, vol. 77(3), pages 387-392, November.
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  5. Reis, Ana Balcao, 2001. "Endogenous Growth and the Possibility of Eliminating Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 360-373, November.
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  9. Munasinghe, Mohan, 1999. "Is environmental degradation an inevitable consequence of economic growth: tunneling through the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 29(1), pages 89-109, April.
  10. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
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  13. Dinda, Soumyananda, 2005. "A theoretical basis for the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 53(3), pages 403-413, May.
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  17. Cassou, Steven P. & Hamilton, Stephen F., 2004. "The transition from dirty to clean industries: optimal fiscal policy and the environmental Kuznets curve," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1050-1077, November.
  18. McCONNELL, KENNETH E., 1997. "Income and the demand for environmental quality," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 383-399, November.
  19. James Andreoni & Arik Levinson, 1998. "The Simple Analytics of the Environmental Kuznets Curve," NBER Working Papers 6739, National Bureau of Economic Research, Inc.
  20. Maddison, David, 2006. "Environmental Kuznets curves: A spatial econometric approach," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 218-230, March.
  21. Sjak Smulders & Lucas Bretschger & Hannes Egli, 2005. "Economic growth and the diffusion of clean technologies : explaining environmental Kuznets," CER-ETH Economics working paper series 05/42, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
  22. Stern , David I., 1998. "Progress on the environmental Kuznets curve?," Environment and Development Economics, Cambridge University Press, vol. 3(02), pages 173-196, May.
  23. Popp, David, 2004. "ENTICE: endogenous technological change in the DICE model of global warming," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 742-768, July.
  24. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
  25. Bretschger, Lucas & Smulders, Sjak, 2000. "Explaining environmental Kuznets curves: How pollution induces policy and new technologies," Wirtschaftswissenschaftliche Diskussionspapiere 12/2000, Ernst Moritz Arndt University of Greifswald, Faculty of Law and Economics.
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Cited by:
  1. Kaika, Dimitra & Zervas, Efthimios, 2013. "The Environmental Kuznets Curve (EKC) theory—Part A: Concept, causes and the CO2 emissions case," Energy Policy, Elsevier, vol. 62(C), pages 1392-1402.

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