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A New Approach to Pollution Modelling in Models of the Environmental Kuznets Curve

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  • Hannes Egli

Abstract

Models of the Environmental Kuznets Curve, particularly those with an explicit abatement technology, often involve that pollution becomes negative in the long run. This, of course, is a highly implausible prediction. The paper at hand examines the problem of negative pollution by, first, critically discussing two approaches adopted in existing EKC models and, second, by proposing a new approach. Motivated by the debatable assumption of perpetually increasing returns to scale in abatement, the idea of fading increasing returns to scale is introduced. This procedure does not only constitute a solution to the theoretical problem of negative pollution, but also does well regarding the empirical plausibility of the abatement technology.

Suggested Citation

  • Hannes Egli, 2005. "A New Approach to Pollution Modelling in Models of the Environmental Kuznets Curve," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(III), pages 459-473, September.
  • Handle: RePEc:ses:arsjes:2005-iii-7
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    1. Hannes Egli & Thomas Steger, 2007. "A Dynamic Model of the Environmental Kuznets Curve: Turning Point and Public Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(1), pages 15-34, January.
    2. Halicioglu, Ferda & Ketenci, Natalya, 2015. "The impact of international trade on environmental quality in transition countries: evidence from time series data during 1991-2013," MPRA Paper 71097, University Library of Munich, Germany, revised 2015.
    3. Halicioglu, Ferda & Ketenci, Natalya, 2016. "The impact of international trade on environmental quality: The case of transition countries," Energy, Elsevier, vol. 109(C), pages 1130-1138.

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    More about this item

    Keywords

    Environmental Kuznets Curve; Negative Pollution; Abatement Technology; Increasing Returns to Scale;
    All these keywords.

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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