Explaining environmental Kuznets curves: How pollution induces policy and new technologies
AbstractProduction often causes pollution as a by-product. Once pollution problems become too severe, regulation is introduced by political authorities which forces the economy to make a transition to cleaner production processes. We model this transition as a change in general purpose technology (GPT) and investigate how it interferes with economic growth driven by qualityimprovements. The model gives an explanation for the inverted U-shaped relationship found in empirical research for many pollutants, often referred to as the Environmental Kuznets Curve (EKC). We provide an analytical foundation for the claim that the rise and decline of pollution can be explained by policyinduced technology shifts. --
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Bibliographic InfoPaper provided by Ernst Moritz Arndt University of Greifswald, Faculty of Law and Economics in its series Wirtschaftswissenschaftliche Diskussionspapiere with number 12/2000.
Date of creation: 2000
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Environmental Kuznets curve; general purpose technology; growth;
Other versions of this item:
- Smulders, J.A. & Bretschger, L., 2000. "Explaining Environmental Kuznets Curves: How Pollution Induces Policy and New Technologies," Discussion Paper 2000-95, Tilburg University, Center for Economic Research.
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
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