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A tale of two elasticities: A general theoretical framework for the environmental Kuznets curve analysis

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  • Figueroa B., Eugenio
  • Pasten, Roberto

Abstract

We show that a variety of seemingly diverse concepts used to theoretically explaining the EKC have a common origin in two key preference and production elasticities. We also prove that they jointly correspond to a unique, underlying preference-technology theoretical framework.

Suggested Citation

  • Figueroa B., Eugenio & Pasten, Roberto, 2013. "A tale of two elasticities: A general theoretical framework for the environmental Kuznets curve analysis," Economics Letters, Elsevier, vol. 119(1), pages 85-88.
    • Handle: RePEc:eee:ecolet:v:119:y:2013:i:1:p:85-88
    DOI: 10.1016/j.econlet.2013.01.019
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    References listed on IDEAS

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    1. McCONNELL, KENNETH E., 1997. "Income and the demand for environmental quality," Environment and Development Economics, Cambridge University Press, vol. 2(4), pages 383-399, July.
    2. Bousquet, Alain & Favard, Pascal, 2000. "Does S. Kuznets' Belief Question the Environment Kuznets Curves?," IDEI Working Papers 107, Institut d'Économie Industrielle (IDEI), Toulouse.
    3. Lopez Ramon, 1994. "The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 163-184, September.
    4. Andreoni, James & Levinson, Arik, 2001. "The simple analytics of the environmental Kuznets curve," Journal of Public Economics, Elsevier, vol. 80(2), pages 269-286, May.
    5. 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.
    6. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
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    Citations

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    Cited by:

    1. Michael L. Polemis, 2018. "Revisiting the Environmental Kuznets Curve: a semi-parametric analysis on the role of market structure on environmental pollution," Letters in Spatial and Resource Sciences, Springer, vol. 11(1), pages 27-35, March.
    2. Musolesi Antonio & Mazzanti Massimiliano, 2014. "Nonlinearity, heterogeneity and unobserved effects in the carbon dioxide emissions-economic development relation for advanced countries," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 18(5), pages 1-21, December.
    3. Mazzanti, Massimiliano & Musolesi, Antonio, 2013. "Nonlinearity, Heterogeneity and Unobserved Effects in the CO2-income Relation for Advanced Countries," Climate Change and Sustainable Development 162374, Fondazione Eni Enrico Mattei (FEEM).
    4. Emil Georgiev & Emil Mihaylov, 2015. "Economic growth and the environment: reassessing the environmental Kuznets Curve for air pollution emissions in OECD countries," Letters in Spatial and Resource Sciences, Springer, vol. 8(1), pages 29-47, March.
    5. López, Ramón E. & Yoon, Sang W., 2014. "Pollution–income dynamics," Economics Letters, Elsevier, vol. 124(3), pages 504-507.
    6. Javier Sánchez García & Emilio Galdeano Gómez & Adrián Segura Ecseki, 2022. "Environmental challenges for EU productive sectors: an analysis through Kuznets curves," SN Business & Economics, Springer, vol. 2(11), pages 1-25, November.
    7. Figueroa, Eugenio & Pastén, Roberto, 2015. "Beyond additive preferences: Economic behavior and the income pollution path," Resource and Energy Economics, Elsevier, vol. 41(C), pages 91-102.
    8. López, Ramón E. & Yoon, Sang W., 2016. "Sustainable growth with irreversible stock effects of renewable resources," Economics Letters, Elsevier, vol. 147(C), pages 153-156.
    9. Jaime Alonso-Carrera & Carlos Miguel & Baltasar Manzano, 2019. "Economic Growth and Environmental Degradation When Preferences are Non-homothetic," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1011-1036, November.

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    More about this item

    Keywords

    Environmental Kuznets curve; Income-elasticity of marginal utility; Elasticity of substitution between factors;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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