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The Simple Analytics of the Environmental Kuznets Curve

  • James Andreoni
  • Arik Levinson

Evidence suggests that some pollutants follow an inverse-U-shaped pattern relative to countries' incomes. This relationship has been called the out a simple and straight-forward static model of the microfoundations of the pollution-income relationship. We show that the environmental Kuznets curve can be derived directly from the technological link between consumption of a desired good and abatement of its undesirable byproduct. The inverse-U shape does not depend on the dynamics of growth, political institutions, or even externalities, and can be consistent with a decentralized economy as well as a Pareto efficient policy.

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File URL: http://www.nber.org/papers/w6739.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6739.

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Date of creation: Sep 1998
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Publication status: published as Andreoni, James and Arik Levinson. "The Simple Analytics Of The Environmental Kuznets Curve," Journal of Public Economics, 2001, v80(2,May), 269-286.
Handle: RePEc:nbr:nberwo:6739
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  15. John, A & Pecchenino, R, 1994. "An Overlapping Generations Model of Growth and the Environment," Economic Journal, Royal Economic Society, vol. 104(427), pages 1393-1410, November.
  16. P Ekins, 1997. "The Kuznets curve for the environment and economic growth: examining the evidence," Environment and Planning A, Pion Ltd, London, vol. 29(5), pages 805-830, May.
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