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Quantifying Central Hypotheses on Environmental Kuznets Curves for a Rich Economy: A Computable General Equilibrium Study

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Author Info
Annegrete Bruvoll, Taran Fæhn and Birger Strøm () (Statistics Norway)

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Abstract

We investigate whether the future relationships between several pollutants and per capita income in rich countries may assume the inverted U-forms of Environmental Kuznets Curves (EKC). The emission-augmenting effect of scaling up aggregate economic activity may be counteracted by greener composition of production and consumption, technological progress, and increased demand for environmental quality and policy. To quantify the importance of these central hypotheses, we use a CGE model with endogenous policy for Norway. Our results suggest significant future effects of all these three counteracting mechanisms. For most local and regional pollutants, they may be strong enough to prolong the falling emission trends. However, we cannot rely on reductions in emissions of climate gases and some transport-related local pollutants. Our results also indicate that pollution leakages abroad are likely to find place.

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Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 341.

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Date of creation: Feb 2003
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Handle: RePEc:ssb:dispap:341

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Related research
Keywords: The Environmental Kuznets Curve; Endogenous Policy; Climate policy; Dynamic CGE Model.;

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Find related papers by JEL classification:
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Douglas Holtz-Eakin & Thomas M. Selden, 1992. "Stoking the Fires? Co2 Emissions and Economic Growth," NBER Working Papers 4248, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Barker, Terry, 1999. "Achieving a 10% Cut in Europe's Carbon Dioxide Emissions Using Additional Excise Duties: Coordinated, Uncoordinated and Unilateral Action Using the Econometric Model E3ME," Economic Systems Research, Taylor and Francis Journals, vol. 11(4), pages 401-21, December.
  3. Larry E. Jones & Rodolfo E. Manuelli, 2001. "Endogenous Policy Choice: The Case of Pollution and Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 4(2), pages 369-405, July. [Downloadable!] (restricted)
    Other versions:
  4. Heinz Jansen, 2001. "Induced Institutional Change in the Trade and Environment Debate," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(2), pages 149-172, February. [Downloadable!] (restricted)
  5. Annegrete Bruvoll and Hege Medin, 2000. "Factoring the environmental Kuznets curve Evidence from Norway," Discussion Papers 275, Research Department of Statistics Norway. [Downloadable!]
  6. Grossman, Gene M & Krueger, Alan B, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 353-77, May. [Downloadable!] (restricted)
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  7. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
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  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. [Downloadable!] (restricted)
  9. Annegrete Bruvoll og Bodil Merethe Larsen, 2002. "Greenhouse gas emissions in Norway Do carbon taxes work?," Discussion Papers 337, Research Department of Statistics Norway. [Downloadable!]
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  10. Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January. [Downloadable!] (restricted)
  11. De Bruyn, Sander M., 1997. "Explaining the environmental Kuznets curve: structural change and international agreements in reducing sulphur emissions," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 485-503, November. [Downloadable!]
  12. Ansuategi, Alberto & Escapa, Marta, 2002. "Economic growth and greenhouse gas emissions," Ecological Economics, Elsevier, vol. 40(1), pages 23-37, January. [Downloadable!] (restricted)
  13. Anderson, Dennis & Cavendish, William, 2001. "Dynamic Simulation and Environmental Policy Analysis: Beyond Comparative Statistics and the Environmental Kuznets Curve," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 721-46, October.
  14. Agras, Jean & Chapman, Duane, 1999. "A dynamic approach to the Environmental Kuznets Curve hypothesis," Ecological Economics, Elsevier, vol. 28(2), pages 267-277, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Taran Fæhn and Annegrete Bruvoll, 2006. "Richer and cleaner - at others' expense?," Discussion Papers 477, Research Department of Statistics Norway. [Downloadable!]
    Other versions:
  2. Arief Anshory Yusuf, 2004. "Poverty and Environmental Degradation: Searching for Theoretical Linkages," Working Papers in Economics and Development Studies (WoPEDS) 200403, Department of Economics, Padjadjaran University, revised Oct 2004. [Downloadable!]
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