IDEAS home Printed from https://ideas.repec.org/a/eee/chieco/v36y2015icp146-165.html
   My bibliography  Save this article

Population growth and the environmental Kuznets curve

Author

Listed:
  • Wang, Sophie Xuefei
  • Fu, Yu Benjamin
  • Zhang, Zhe George

Abstract

This paper provides a specific application of the environmental Kuznets curve (EKC) in order to explain the effect of population growth on the environment. The main purpose is contributing to enhance the connection between theoretical and empirical analysis. We develop an overlapping generations (OLG) model that featured with an inverted U-shaped relationship between pollution emission and income and we examine the effect of population growth on this relationship. Simulations illustrate the model's predictions that positive population growth makes the EKC steeper and have higher peak, but it does not fundamentally change the pollution–income relationship. The econometric analysis finds evidence supporting our model's predictions using Chinese data at the province level.

Suggested Citation

  • Wang, Sophie Xuefei & Fu, Yu Benjamin & Zhang, Zhe George, 2015. "Population growth and the environmental Kuznets curve," China Economic Review, Elsevier, vol. 36(C), pages 146-165.
  • Handle: RePEc:eee:chieco:v:36:y:2015:i:c:p:146-165
    DOI: 10.1016/j.chieco.2015.08.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1043951X15001121
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.chieco.2015.08.012?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Scrieciu, S. Serban, 2007. "Can economic causes of tropical deforestation be identified at a global level?," Ecological Economics, Elsevier, vol. 62(3-4), pages 603-612, May.
    2. E. B. Barbier & J. C. Burgess, 2001. "The Economics of Tropical Deforestation," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 413-433, July.
    3. Wagner, Martin, 2008. "The carbon Kuznets curve: A cloudy picture emitted by bad econometrics?," Resource and Energy Economics, Elsevier, vol. 30(3), pages 388-408, August.
    4. Baek, Jungho & Kim, Hyun Seok, 2013. "Is economic growth good or bad for the environment? Empirical evidence from Korea," Energy Economics, Elsevier, vol. 36(C), pages 744-749.
    5. Roy, Nilanjana & Cornelis van Kooten, G., 2004. "Another look at the income elasticity of non-point source air pollutants: a semiparametric approach," Economics Letters, Elsevier, vol. 85(1), pages 17-22, October.
    6. Martínez-Zarzoso, Inmaculada & Maruotti, Antonello, 2011. "The impact of urbanization on CO2 emissions: Evidence from developing countries," Ecological Economics, Elsevier, vol. 70(7), pages 1344-1353, May.
    7. Stokey, Nancy L, 1998. "Are There Limits to Growth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February.
    8. 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.
    9. Shi, Anqing, 2003. "The impact of population pressure on global carbon dioxide emissions, 1975-1996: evidence from pooled cross-country data," Ecological Economics, Elsevier, vol. 44(1), pages 29-42, February.
    10. Arrow, Kenneth & Bolin, Bert & Costanza, Robert & Dasgupta, Partha & Folke, Carl & Holling, C.S. & Jansson, Bengt-Owe & Levin, Simon & Mäler, Karl-Göran & Perrings, Charles & Pimentel, David, 1996. "Economic growth, carrying capacity, and the environment," Environment and Development Economics, Cambridge University Press, vol. 1(1), pages 104-110, February.
    11. Song, Tao & Zheng, Tingguo & Tong, Lianjun, 2008. "An empirical test of the environmental Kuznets curve in China: A panel cointegration approach," China Economic Review, Elsevier, vol. 19(3), pages 381-392, September.
    12. Shen, Junyi, 2006. "A simultaneous estimation of Environmental Kuznets Curve: Evidence from China," China Economic Review, Elsevier, vol. 17(4), pages 383-394.
    13. 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.
    14. Onafowora, Olugbenga A. & Owoye, Oluwole, 2014. "Bounds testing approach to analysis of the environment Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 44(C), pages 47-62.
    15. Dinda, Soumyananda, 2005. "A theoretical basis for the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 53(3), pages 403-413, May.
    16. CARSON, RICHARd T. & JEON, YONGIL & McCUBBIN, DONALD R., 1997. "The relationship between air pollution emissions and income: US Data," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 433-450, November.
    17. Cole, M.A. & Rayner, A.J. & Bates, J.M., 1997. "The environmental Kuznets curve: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 401-416, November.
    18. Costanza, Robert, 1995. "Economic growth, carrying capacity, and the environment," Ecological Economics, Elsevier, vol. 15(2), pages 89-90, November.
    19. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    20. Vincent, Jeffrey R., 1997. "Testing for environmental Kuznets curves within a developing country," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 417-431, November.
    21. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    22. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
    23. Panayotou T., 1993. "Empirical tests and policy analysis of environmental degradation at different stages of economic development," ILO Working Papers 992927783402676, International Labour Organization.
    24. Gene M. Grossman & Alan B. Krueger, 1991. "Environmental Impacts of a North American Free Trade Agreement," NBER Working Papers 3914, National Bureau of Economic Research, Inc.
    25. Shafik, Nemat, 1994. "Economic Development and Environmental Quality: An Econometric Analysis," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 757-773, Supplemen.
    26. Cropper, Maureen & Griffiths, Charles, 1994. "The Interaction of Population Growth and Environmental Quality," American Economic Review, American Economic Association, vol. 84(2), pages 250-254, May.
    27. Barbier, E B & Burgess, J C, 2001. "The Economics of Tropical Deforestation," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 413-433, July.
    28. 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.
    29. Yang, Haisheng & He, Jie & Chen, Shaoling, 2015. "The fragility of the Environmental Kuznets Curve: Revisiting the hypothesis with Chinese data via an “Extreme Bound Analysis”," Ecological Economics, Elsevier, vol. 109(C), pages 41-58.
    30. 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.
    31. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 353-377.
    32. Chimeli, Ariaster B. & Braden, John B., 2005. "Total factor productivity and the environmental Kuznets curve," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 366-380, March.
    33. 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.
    34. Kaufmann, Robert K. & Davidsdottir, Brynhildur & Garnham, Sophie & Pauly, Peter, 1998. "The determinants of atmospheric SO2 concentrations: reconsidering the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 25(2), pages 209-220, May.
    35. Bhattarai, Madhusudan & Hammig, Michael, 2001. "Institutions and the Environmental Kuznets Curve for Deforestation: A Crosscountry Analysis for Latin America, Africa and Asia," World Development, Elsevier, vol. 29(6), pages 995-1010, June.
    36. Koop, Gary & Tole, Lise, 1999. "Is there an environmental Kuznets curve for deforestation?," Journal of Development Economics, Elsevier, vol. 58(1), pages 231-244, February.
    37. Hilton, F. G. Hank & Levinson, Arik, 1998. "Factoring the Environmental Kuznets Curve: Evidence from Automotive Lead Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 35(2), pages 126-141, March.
    38. Panayotou, Theodore, 1997. "Demystifying the environmental Kuznets curve: turning a black box into a policy tool," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 465-484, November.
    39. Cao, Dong & Wang, Lin & Wang, Yaozhong, 2011. "Endogenous fluctuations induced by nonlinear pollution accumulation in an OLG economy and the bifurcation control," Economic Modelling, Elsevier, vol. 28(6), pages 2528-2531.
    40. Selden Thomas M. & Song Daqing, 1995. "Neoclassical Growth, the J Curve for Abatement, and the Inverted U Curve for Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 162-168, September.
    41. Brajer, Victor & Mead, Robert W. & Xiao, Feng, 2011. "Searching for an Environmental Kuznets Curve in China's air pollution," China Economic Review, Elsevier, vol. 22(3), pages 383-397, September.
    42. 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.
    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. Lech Gruszecki & Bartosz Jóźwik, 2019. "Teoretyczne rekonstrukcje środowiskowej krzywej Kuznetsa," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 95-117.
    2. Dian Li & Ziheng Shangguan & Malan Huang & Xinyue Zhang & Lu Tang, 2022. "Impacts of Urban Development on Regional Green Development Efficiency—A Case of the Yangtze River Delta in China," Energies, MDPI, vol. 15(13), pages 1-18, June.
    3. Sweety Pandey & Mrutyunjaya Mishra, 2021. "Investigating Environmental Kuznets Curve: A Panel Data Analysis for India," Review of Development and Change, , vol. 26(2), pages 137-152, December.
    4. Alexandra-Anca Purcel, 2020. "New insights into the environmental Kuznets curve hypothesis in developing and transition economies : a literature survey," Post-Print hal-03182332, HAL.
    5. Lech E. Gruszecki & Alina Betlej & Bartosz Jozwik & Andrzej Pietrzak, 2021. "Influence of Religious Faith on Economic Growth and the Environment," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 699-715.
    6. Lin Cui & Alistair Hunt & Bruce Morley, 2021. "The Effectiveness of Environmental Spending in China and the Environmental Kuznets Curve," Sustainability, MDPI, vol. 13(21), pages 1-17, November.
    7. 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.
    8. Eleftherios Filippiadis & Anastasia Litina, 2022. "A dynamic analysis of the income–pollution relationship in a two-country setting," Economic Change and Restructuring, Springer, vol. 55(2), pages 775-801, May.
    9. Ritu Rani & Naresh Kumar, 2019. "Investigating the Presence of Environmental Kuznets Curve Hypothesis in India and China: An Autoregressive Distributive Lag Approach," Jindal Journal of Business Research, , vol. 8(2), pages 194-210, December.
    10. Shuai Chen & Faqin Lin & Xi Yao & Peng Zhang, 2020. "WTO accession, trade expansion, and air pollution: Evidence from China’s county‐level panel data," Review of International Economics, Wiley Blackwell, vol. 28(4), pages 1020-1045, September.
    11. Yuyi Chen & Yunong Li & Jie Yan, 2019. "Tracing Air Pollutant Emissions in China: Structural Decomposition and GVC Accounting," Sustainability, MDPI, vol. 11(9), pages 1-21, May.
    12. Zaman, Khalid & Moemen, Mitwali Abd-el., 2017. "Energy consumption, carbon dioxide emissions and economic development: Evaluating alternative and plausible environmental hypothesis for sustainable growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1119-1130.
    13. Hao, Yu & Zhang, Zong-Yong & Yang, Chuxiao & Wu, Haitao, 2021. "Does structural labor change affect CO2 emissions? Theoretical and empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    14. Hongtao Hu & Krishna P. Paudel & Ying Tan, 2022. "Income, Policy, and Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(1), pages 131-153, January.

    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. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    2. Jie He, 2007. "Is the Environmental Kuznets Curve hypothesis valid for developing countries? A survey," Cahiers de recherche 07-03, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    3. Roxana Pincheira & Felipe Zuniga, 2021. "Environmental Kuznets curve bibliographic map: a systematic literature review," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(S1), pages 1931-1956, April.
    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. Ranganathan, Shyam & Bali Swain, Ranjula, 2014. "Analysing Mechanisms for Meeting Global Emissions Target - A Dynamical Systems Approach," Working Paper Series 2014:10, Uppsala University, Department of Economics.
    6. Richard T. Carson, 2010. "The Environmental Kuznets Curve: Seeking Empirical Regularity and Theoretical Structure," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 3-23, Winter.
    7. He, Jie & Richard, Patrick, 2010. "Environmental Kuznets curve for CO2 in Canada," Ecological Economics, Elsevier, vol. 69(5), pages 1083-1093, March.
    8. Carson, Richard T, 2009. "Searching for Empirical Regularity and Theoretical Structure: The Environmental Kuznets Curve," University of California at San Diego, Economics Working Paper Series qt4m6263c2, Department of Economics, UC San Diego.
    9. Saboori, Behnaz & Sulaiman, Jamalludin & Mohd, Saidatulakmal, 2012. "Economic growth and CO2 emissions in Malaysia: A cointegration analysis of the Environmental Kuznets Curve," Energy Policy, Elsevier, vol. 51(C), pages 184-191.
    10. Valeria Costantini & Chiara Martini, 2010. "A Modified Environmental Kuznets Curve for sustainable development assessment using panel data," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 10(1/2), pages 84-122.
    11. Theodore Panayotou, 2000. "Economic Growth and the Environment," CID Working Papers 56A, Center for International Development at Harvard University.
    12. Sigrid Stagl, 1999. "Delinking Economic Growth from Environmental Degradation? A Literature Survey on the Environmental Kuznets Curve Hypothesis," Working Papers geewp06, Vienna University of Economics and Business Research Group: Growth and Employment in Europe: Sustainability and Competitiveness.
    13. 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.
    14. Stern, David I., 2014. "The Environmental Kuznets Curve: A Primer," Working Papers 249424, Australian National University, Centre for Climate Economics & Policy.
    15. 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.
    16. 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.
    17. Ezzati, Majid & Singer, Burton H. & Kammen, Daniel M., 2001. "Towards an Integrated Framework for Development and Environment Policy: The Dynamics of Environmental Kuznets Curves," World Development, Elsevier, vol. 29(8), pages 1421-1434, August.
    18. 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.
    19. Alexandra-Anca Purcel, 2020. "New insights into the environmental Kuznets curve hypothesis in developing and transition economies: a literature survey," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(4), pages 585-631, October.
    20. He, Jie & Wang, Hua, 2012. "Economic structure, development policy and environmental quality: An empirical analysis of environmental Kuznets curves with Chinese municipal data," Ecological Economics, Elsevier, vol. 76(C), pages 49-59.

    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:eee:chieco:v:36:y:2015:i:c:p:146-165. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/chieco .

    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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/chieco .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.