IDEAS home Printed from https://ideas.repec.org/a/bla/scotjp/v50y2003i2p149-173.html
   My bibliography  Save this article

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

Author

Listed:
  • Annegrete Bruvoll
  • Taran Fæhn
  • Birger Strøm

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 can 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 take place.

Suggested Citation

  • Annegrete Bruvoll & Taran Fæhn & Birger Strøm, 2003. "Quantifying Central Hypotheses on Environmental Kuznets Curves for a Rich Economy: A Computable General Equilibrium Study," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(2), pages 149-173, May.
    • Handle: RePEc:bla:scotjp:v:50:y:2003:i:2:p:149-173
    DOI: 10.1111/1467-9485.5002003
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-9485.5002003
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-9485.5002003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, vol. 57(1), pages 85-101, May.
    2. Simone Borghesi, 1999. "The Environmental Kuznets Curve: a Survey of the Literature," Working Papers 1999.85, Fondazione Eni Enrico Mattei.
    3. Steigum, E.Jr., 1992. "Accounting for Long-Run Effects of Fiscal Policy by Means of Computable Overlapping Generations Models," Papers 05-92, Norwegian School of Economics and Business Administration-.
    4. 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.
    5. 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.
    6. Heinz Jansen, 2001. "Induced Institutional Change in the Trade and Environment Debate," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(2), pages 149-172, February.
    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.
    8. Henry D. Jacoby & Richard S. Eckaus & Denny A. Ellerman & Ronald G. Prinn & David M. Reiner & Zili Yang, 1997. "CO2 Emissions Limits: Economic Adjustments and the Distribution of Burdens," The Energy Journal, , vol. 18(3), pages 31-58, July.
    9. Terry Barker, 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 & Francis Journals, vol. 11(4), pages 401-422.
    10. 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.
    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(4), pages 485-503, November.
    12. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    13. Agras, Jean & Chapman, Duane, 1999. "A dynamic approach to the Environmental Kuznets Curve hypothesis," Ecological Economics, Elsevier, vol. 28(2), pages 267-277, February.
    14. Aunan, Kristin & Fang, Jinghua & Vennemo, Haakon & Oye, Kenneth & Seip, Hans M., 2004. "Co-benefits of climate policy--lessons learned from a study in Shanxi, China," Energy Policy, Elsevier, vol. 32(4), pages 567-581, March.
    15. Hettige, Hemamala & Lucas, Robert E B & Wheeler, David, 1992. "The Toxic Intensity of Industrial Production: Global Patterns, Trends, and Trade Policy," American Economic Review, American Economic Association, vol. 82(2), pages 478-481, May.
    16. Robert E. B. Lucas, 1994. "International Environmental Indicators: Trade, Income and Endowments," Boston University - Institute for Economic Development 46, Boston University, Institute for Economic Development.
    17. Annegrete Bruvoll & Hege Medin, 2003. "Factors Behind the Environmental Kuznets Curve. A Decomposition of the Changes in Air Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(1), pages 27-48, January.
    18. Shafik, Nemat & Bandyopadhyay, Sushenjit, 1992. "Economic growth and environmental quality : time series and cross-country evidence," Policy Research Working Paper Series 904, The World Bank.
    19. Bruvoll, Annegrete & Larsen, Bodil Merethe, 2004. "Greenhouse gas emissions in Norway: do carbon taxes work?," Energy Policy, Elsevier, vol. 32(4), pages 493-505, March.
    20. Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January.
    21. Thomas M. Selden & Anne S. Forrest & James E. Lockhart, 1999. "Analyzing the Reductions in U.S. Air Pollution Emissions: 1970 to 1990," Land Economics, University of Wisconsin Press, vol. 75(1), pages 1-21.
    22. Ansuategi, Alberto & Escapa, Marta, 2002. "Economic growth and greenhouse gas emissions," Ecological Economics, Elsevier, vol. 40(1), pages 23-37, January.
    23. 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 721-746, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fæhn, Taran & Bruvoll, Annegrete, 2009. "Richer and cleaner--At others' expense?," Resource and Energy Economics, Elsevier, vol. 31(2), pages 103-122, May.
    2. Brita Bye & Marit E. Klemetsen, 2018. "The Impacts of Alternative Policy Instruments on Environmental Performance: A Firm Level Study of Temporary and Persistent Effects," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(2), pages 317-341, February.
    3. Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Roubaud, David & Farhani, Sahbi, 2018. "How economic growth, renewable electricity and natural resources contribute to CO2 emissions?," Energy Policy, Elsevier, vol. 113(C), pages 356-367.
    4. Hanley, Nick & McGregor, Peter G. & Swales, J. Kim & Turner, Karen, 2009. "Do increases in energy efficiency improve environmental quality and sustainability?," Ecological Economics, Elsevier, vol. 68(3), pages 692-709, January.
    5. Enrico Maria Mosconi & Andrea Colantoni & Filippo Gambella & Eva Cudlinová & Luca Salvati & Jesús Rodrigo-Comino, 2020. "Revisiting the Environmental Kuznets Curve: The Spatial Interaction between Economy and Territory," Economies, MDPI, vol. 8(3), pages 1-20, September.
    6. Caviglia-Harris, Jill L. & Chambers, Dustin & Kahn, James R., 2009. "Taking the "U" out of Kuznets: A comprehensive analysis of the EKC and environmental degradation," Ecological Economics, Elsevier, vol. 68(4), pages 1149-1159, February.
    7. Van Hoa, Tran & Limskul, Kitti, 2013. "Economic impact of CO2 emissions on Thailand's growth and climate change mitigation policy: A modelling analysis," Economic Modelling, Elsevier, vol. 33(C), pages 651-658.
    8. Janine De Fence & Nick Hanley & Karen Turner, 2009. "Do Productivity Improvements Move Us Along the Environmental Kuznets Curve?," Working Papers 0908, University of Strathclyde Business School, Department of Economics.
    9. Alvarez-Herranz, Agustin & Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Cantos, José María, 2017. "Energy innovation and renewable energy consumption in the correction of air pollution levels," Energy Policy, Elsevier, vol. 105(C), pages 386-397.
    10. Bruvoll, Annegrete & Faehn, Taran, 2006. "Transboundary effects of environmental policy: Markets and emission leakages," Ecological Economics, Elsevier, vol. 59(4), pages 499-510, October.
    11. Shahbaz, Muhammad & Nasir, Muhammad Ali & Roubaud, David, 2018. "Environmental degradation in France: The effects of FDI, financial development, and energy innovations," Energy Economics, Elsevier, vol. 74(C), pages 843-857.
    12. Turner, Karen & Hanley, Nick, 2011. "Energy efficiency, rebound effects and the environmental Kuznets Curve," Energy Economics, Elsevier, vol. 33(5), pages 709-720, September.
    13. Salvati Luca, 2013. "Land Quality, Development and Space: Does Scale Matter?," European Spatial Research and Policy, Sciendo, vol. 20(2), pages 99-112, December.
    14. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    15. Jette Jacobsen & Nick Hanley, 2009. "Are There Income Effects on Global Willingness to Pay for Biodiversity Conservation?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(2), pages 137-160, June.
    16. Bruvoll, Annegrete & Larsen, Bodil Merethe, 2004. "Greenhouse gas emissions in Norway: do carbon taxes work?," Energy Policy, Elsevier, vol. 32(4), pages 493-505, March.
    17. Holmøy, Erling, 2016. "The development and use of CGE models in Norway," Journal of Policy Modeling, Elsevier, vol. 38(3), pages 448-474.
    18. Mumbunan, Sonny & Maitri, Ni Made Rahayu, 2022. "A Review of Basic Income for Nature and Climate," OSF Preprints bre43, Center for Open Science.
    19. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bruvoll, Annegrete & Faehn, Taran, 2006. "Transboundary effects of environmental policy: Markets and emission leakages," Ecological Economics, Elsevier, vol. 59(4), pages 499-510, October.
    2. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    3. Auci, Sabrina & Becchetti, Leonardo, 2006. "The instability of the adjusted and unadjusted environmental Kuznets curves," Ecological Economics, Elsevier, vol. 60(1), pages 282-298, November.
    4. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    5. Fæhn, Taran & Bruvoll, Annegrete, 2009. "Richer and cleaner--At others' expense?," Resource and Energy Economics, Elsevier, vol. 31(2), pages 103-122, May.
    6. Annegrete Bruvoll & Hege Medin, 2003. "Factors Behind the Environmental Kuznets Curve. A Decomposition of the Changes in Air Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(1), pages 27-48, January.
    7. He, Jie, 2010. "What is the role of openness for China's aggregate industrial SO2 emission?: A structural analysis based on the Divisia decomposition method," Ecological Economics, Elsevier, vol. 69(4), pages 868-886, February.
    8. Jie He, 2007. "Is the Environmental Kuznets Curve hypothesis valid for developing countries? A survey," Cahiers de recherche 07-03, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    9. Sabrina Auci & Giovanni Trovato, 2018. "The environmental Kuznets curve within European countries and sectors: greenhouse emission, production function and technology," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(3), pages 895-915, December.
    10. Auci, Sabrina & Vignani, Donatella, 2013. "Environmental Kuznets curve and domestic material consumption indicator: an European analysis," MPRA Paper 52882, University Library of Munich, Germany.
    11. Dinda, Soumyananda & Coondoo, Dipankor & Pal, Manoranjan, 2000. "Air quality and economic growth: an empirical study," Ecological Economics, Elsevier, vol. 34(3), pages 409-423, September.
    12. Jha, Raghbendra & Murthy, K. V. Bhanu, 2003. "An inverse global environmental Kuznets curve," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 352-368, June.
    13. Hettige, Hemamala & Mani, Muthukumara & Wheeler, David, 2000. "Industrial pollution in economic development: the environmental Kuznets curve revisited," Journal of Development Economics, Elsevier, vol. 62(2), pages 445-476, August.
    14. Jie HE, 2005. "Economic Determinants for China’s Industrial SO2 Emission: Reduced vs. Structural form and the role of international trade," Working Papers 200505, CERDI.
    15. Sabuj Kumar Mandal & Devleena Chakravarty, 2017. "Role of energy in estimating turning point of Environmental Kuznets Curve: an econometric analysis of the existing studies," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(2), pages 387-401, October.
    16. Danesh Miah, Md. & Farhad Hossain Masum, Md. & Koike, Masao, 2010. "Global observation of EKC hypothesis for CO2, SOx and NOx emission: A policy understanding for climate change mitigation in Bangladesh," Energy Policy, Elsevier, vol. 38(8), pages 4643-4651, August.
    17. Amjad Ali & Marc Audi & Ismail Senturk & Yannick Roussel, 2022. "Do Sectoral Growth Promote CO2 Emissions in Pakistan? Time Series Analysis in Presence of Structural Break," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 410-425, March.
    18. Atwi, Majed & Barberán, Ramón & Mur, Jesús & Angulo, Ana, 2018. "CO2 Kuznets Curve Revisited: From Cross-Sections to Panel Data Models," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 40, pages 169-196.
    19. Tutulmaz, Onur, 2015. "Environmental Kuznets Curve time series application for Turkey: Why controversial results exist for similar models?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 73-81.
    20. J., AZNAR-MARQUEZ & Jose-Ramon, RUIZ-TAMARIT, 2005. "Demographic Transition Environmental Concern and the Kuznets Curve," Discussion Papers (ECON - Département des Sciences Economiques) 2005001, Université catholique de Louvain, Département des Sciences Economiques.

    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • O11 - Economic Development, Innovation, 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:scotjp:v:50:y:2003:i:2:p:149-173. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/sesssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.