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Transboundary Externalities in the Environmental Transition Hypothesis

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  • Alberto Ansuategi
  • Charles Perrings

Abstract

The Environmental Kuznets Curve (EKC) is a hypothesis which implies that it is possible to “grow out of environmental degradation”. Most theoretical models of the EKC relation have not accounted for transboundary and intergenerational externalities nor have empirical studies provided evidence that validates an inverted U shaped relation between environmental degradation and economic growth for pollution problems where the effects are far-displaced or are long-delayed. This paper integrates the theory of transboundary externalities into the most common theoretical framework applied to the EKC hypothesis. It shows that where a significant proportion of the environmental impacts of economic activity occurs outside the territories in which those activities take place, the de-linking of growth and environmental degradation is less likely to happen. This proposition is demonstrated by assuming that decisionmakers have a Nash-type non cooperative strategic behavior. Copyright Kluwer Academic Publishers 2000

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  • Alberto Ansuategi & Charles Perrings, 2000. "Transboundary Externalities in the Environmental Transition Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(4), pages 353-373, December.
  • Handle: RePEc:kap:enreec:v:17:y:2000:i:4:p:353-373
    DOI: 10.1023/A:1026507017843
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    Cited by:

    1. Margrethe Winslow, 2005. "The environmental Kuznets curve revisited once again," Forum for Social Economics, Springer;The Association for Social Economics, vol. 35(1), pages 1-18, March.
    2. Managi, Shunsuke, 2006. "Are there increasing returns to pollution abatement? Empirical analytics of the Environmental Kuznets Curve in pesticides," Ecological Economics, Elsevier, vol. 58(3), pages 617-636, June.
    3. Eriksson, Clas & Persson, Joakim, 2002. "Economic Growth, Inequality, Democratization, and the Environment," Working Paper Series 178, Trade Union Institute for Economic Research.
    4. Simone Marsiglio & Nahid Masoudi, 2019. "Transboundary Pollution Control and Competitiveness Concerns in a Two-Country Differential Game," CFDS Discussion Paper Series 2019/1, Center for Financial Development and Stability at Henan University, Kaifeng, Henan, China.
    5. Clas Eriksson & Joakim Persson, 2003. "Economic Growth, Inequality, Democratization, and the Environment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(1), pages 1-16, May.
    6. Halkos, George & Tzeremes, Nickolaos, 2011. "A conditional full frontier modelling for analyzing environmental efficiency and economic growth," MPRA Paper 32839, University Library of Munich, Germany.
    7. Davide La Torre & Danilo Liuzzi & Simone Marsiglio, 2019. "Transboundary Pollution Externalities: Think Globally, Act Locally?," Papers 1910.04469, arXiv.org.
    8. Shibing You & Bi Wu & Ping Shen, 2015. "Government factors that influence the relevance between environmental and economic growth," Annals of Operations Research, Springer, vol. 228(1), pages 35-45, May.
    9. Halkos, George E. & Tzeremes, Nickolaos G., 2013. "Carbon dioxide emissions and governance: A nonparametric analysis for the G-20," Energy Economics, Elsevier, vol. 40(C), pages 110-118.
    10. Simone Marsiglio & Fabio Privileggi, 2021. "On the economic growth and environmental trade-off: a multi-objective analysis," Annals of Operations Research, Springer, vol. 296(1), pages 263-289, January.
    11. Alberto Ansuategi, 2003. "Economic Growth and Transboundary Pollution in Europe: An Empirical Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(2), pages 305-328, October.
    12. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    13. Shintaro Nakagawa & Masayuki Sato & Rintaro Yamaguchi, 2014. "Environment, growth, and technological change in a two-country overlapping-generations model," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 16(4), pages 397-443, October.
    14. Halkos, George & Tzeremes, Nickolaos, 2011. "Regional environmental efficiency and economic growth: NUTS2 evidence from Germany, France and the UK," MPRA Paper 33698, University Library of Munich, Germany.
    15. Ansuategi, Alberto & Escapa, Marta, 2002. "Economic growth and greenhouse gas emissions," Ecological Economics, Elsevier, vol. 40(1), pages 23-37, January.
    16. Marta Aloi & Frederic Tournemaine, 2013. "Inequality, growth, and environmental quality tradeoffs in a model with human capital accumulation," Canadian Journal of Economics, Canadian Economics Association, vol. 46(3), pages 1123-1155, August.
    17. Davide Torre & Danilo Liuzzi & Simone Marsiglio, 2017. "Pollution Control Under Uncertainty and Sustainability Concern," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(4), pages 885-903, August.
    18. Christoph Lieb, 2004. "The Environmental Kuznets Curve and Flow versus Stock Pollution: The Neglect of Future Damages," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 29(4), pages 483-506, December.
    19. Halkos, George & Tzeremes, Nickolaos, 2011. "Kuznets curve and environmental performance: evidence from China," MPRA Paper 34312, University Library of Munich, Germany.
    20. Halkos, George & Tzeremes, Nickolaos, 2012. "Regional economic growth and environmental efficiency in greenhouse emissions: A conditional directional distance function approach," MPRA Paper 40015, University Library of Munich, Germany.
    21. Roca, Jordi, 2003. "Do individual preferences explain the Environmental Kuznets curve?," Ecological Economics, Elsevier, vol. 45(1), pages 3-10, April.

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