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Dynamic Simulation and Environmental Policy Analysis: Beyond Comparative Statistics and the Environmental Kuznets Curve

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  • Anderson, Dennis
  • Cavendish, William

Abstract

This paper presents a dynamic simulation model for the quantitative analysis of environmental policy, incorporating key features of technical progress in abatement and an explicit role for policy in determining costs and pollution over time. The model is used to develop scenarios for PM, SO2, and CO2 abatement in developing countries, and the results are compared with those that emerge from studies of Environmental Kuznets Curves (EKC) of economic growth and pollution. The latter, by neglecting the roles of policy and technical progress in pollution abatement, underestimate dramatically the possibilities for countries to reduce pollution while raising incomes. Copyright 2001 by Oxford University Press.

Suggested Citation

  • 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.
  • Handle: RePEc:oup:oxecpp:v:53:y:2001:i:4:p:721-46
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    References listed on IDEAS

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    4. Daron Acemoglu & James A. Robinson, 2000. "Why Did the West Extend the Franchise? Democracy, Inequality, and Growth in Historical Perspective," The Quarterly Journal of Economics, Oxford University Press, vol. 115(4), pages 1167-1199.
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    6. Husted, Thomas A & Kenny, Lawrence W, 1997. "The Effect of the Expansion of the Voting Franchise on the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 54-82, February.
    7. Lindert, Peter H, 1986. "Unequal English Wealth since 1670," Journal of Political Economy, University of Chicago Press, vol. 94(6), pages 1127-1162, December.
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    9. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422, March.
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    Cited by:

    1. 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.
    2. 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.
    3. Annegrete Bruvoll & Taran Fæhn & Birger Str¯m, 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.
    4. repec:gam:jsusta:v:9:y:2017:i:6:p:912-:d:100174 is not listed on IDEAS
    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. 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.
    7. Turner, Karen & Hanley, Nick, 2011. "Energy efficiency, rebound effects and the environmental Kuznets Curve," Energy Economics, Elsevier, pages 709-720.
    8. Sekar, I. & McGarigal, K. & Finn, J.T. & Ryan, R. & Randhir, T.O., 2009. "Water Quality Response to Economic Development: Quantifying Environmental Kuznets Curve," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(1).
    9. Kijima, Masaaki & Nishide, Katsumasa & Ohyama, Atsuyuki, 2011. "EKC-type transitions and environmental policy under pollutant uncertainty and cost irreversibility," Journal of Economic Dynamics and Control, Elsevier, vol. 35(5), pages 746-763, May.
    10. Bond, Craig A. & farzin, Hossein, 2004. "Freedom from Pollution? The State, The People, and the Environmental Kuznets Curve," Working Papers 190904, University of California, Davis, Department of Agricultural and Resource Economics.
    11. Farzin, Y. Hossein & Bond, Craig A., 2006. "Democracy and environmental quality," Journal of Development Economics, Elsevier, vol. 81(1), pages 213-235, October.
    12. repec:eco:journ2:2017-02-21 is not listed on IDEAS
    13. Atif Awad & Mohammed Hersi Warsame, 2017. "Climate Changes in Africa: Does Economic Growth Matter? A Semi-parametric Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 1-8.

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