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Does the Environmental Kuznets Curve Describe How Individual Countries Behave?

  • Deacon, Robert
  • Norman, Catherine S

The environmental Kuznets curve (EKC), an inverted-U relationship between pollution and income, is an influential generalization about the way environmental quality changes as a country makes the transition from poverty to relative affluence. The EKC predicts that pollution will first increase, but subsequently decline if income growth proceeds far enough. We examine within-country time series data on air pollution and income for a sample of individual countries to see if this generalized prediction is commonly borne out. The empirical approach employs robust, nonparametric methods and a recently available data set on SO2, smoke, and particulate air pollution. In most cases examined, the within-country income-pollution patterns we observe do not differ significantly from what would be expected to occur by chance. Where income-pollution relationships are consistent with EKC predictions, the patterns involved are also consistent with a much simpler hypothesis.

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Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number qt6gm8164w.

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Date of creation: 05 Apr 2004
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Handle: RePEc:cdl:ucsbec:qt6gm8164w
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  25. Jewell, Todd & Lee, Junsoo & Tieslau, Margie & Strazicich, Mark C., 2003. "Stationarity of health expenditures and GDP: evidence from panel unit root tests with heterogeneous structural breaks," Journal of Health Economics, Elsevier, vol. 22(2), pages 313-323, March.
  26. 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.
  27. Coondoo, Dipankor & Dinda, Soumyananda, 2002. "Causality between income and emission: a country group-specific econometric analysis," Ecological Economics, Elsevier, vol. 40(3), pages 351-367, March.
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  29. Lopez, Ramon & Mitra, Siddhartha, 2000. "Corruption, Pollution, and the Kuznets Environment Curve," Journal of Environmental Economics and Management, Elsevier, vol. 40(2), pages 137-150, September.
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