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The J-Curve for the relationship between Pollution Abatement Expenditure and Income per capita: A New Empirical Investigation from US Regional Data

  • Monica DAS
  • Debasri MUKHERJEE

The main objective of our paper is to investigate the validity of the theoretically postulated J type relationship between pollution control expenditures/capita and income/capita. We use the Pollution Abatement Costs and Expenditures dataset to examine the validity of this postulated relationship for the US states during the years 1986 – 1994. Using a flexible nonparametric framework, we do not find any evidence to support the J type relationship between abatement/capita and income/capita for the U.S. economy. We attribute this result to the presence of increasing returns to pollution abatement or increasing marginal efficacy of pollution abatement.

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Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 11 (2011)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:eaa:aeinde:v:11:y:2011:i:2_7
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  1. Arik Levinson & M. Scott Taylor, 2004. "Unmasking the Pollution Haven Effect," NBER Working Papers 10629, National Bureau of Economic Research, Inc.
  2. List, John A. & Gallet, Craig A., 1999. "The environmental Kuznets curve: does one size fit all?," Ecological Economics, Elsevier, vol. 31(3), pages 409-423, December.
  3. 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.
  4. Managi, Shunsuke, 2006. "Testing Increasing Returns to Pollution Abatement in Pesticides," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25524, International Association of Agricultural Economists.
  5. David I. Stern, 1996. "Progress on environmental Kuznets curves," Working Papers in Ecological Economics 9601, Australian National University, Centre for Resource and Environmental Studies, Ecological Economics Program.
  6. 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.
  7. Azomahou, Théophile & Laisney, François & van Phu, Nguyen, 2005. "Economic Development and CO2 Emissions: A Nonparametric Panel Approach," ZEW Discussion Papers 05-56, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Qi Li & Jeffrey Scott Racine, 2006. "Nonparametric Econometrics: Theory and Practice," Economics Books, Princeton University Press, edition 1, volume 1, number 8355.
  9. Stengos, T. & Millimet, D.L. & List, J.A., 2002. "The Environmental Kuznets Curve: Real Progress or Misspecified Models?," Working Papers 2002-13, University of Guelph, Department of Economics and Finance.
  10. repec:cup:cbooks:9780521355643 is not listed on IDEAS
  11. Mukherjee, D., 2006. "Is the Rate of ‘Convergence’ Always Constant? Some Empirical Evidence from Sector Level Data of 56 countries, 1975-99," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 6(2).
  12. repec:cup:cbooks:9780521586115 is not listed on IDEAS
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