Improving the Environment for a Greener Future
- New Horizons in Environmental Economics series
Chapter 10: Increasing Returns to Pollution Abatement in the United States
10. 1 Increasing returns to pollution abatement in the United States INTRODUCTION The environmental Kuznets curve (EKC) proposes that there is an inverted U-shaped relationship between a specific measure of environmental pollution and per capita income levels. Starting with the seminal work of Grossman and Krueger (1993, 1995), a number of empirical studies have examined this relationship for various pollutants, regions, and time periods. Researchers have found an inverted U-shaped relationship, monotonically increasing or decreasing, between pollution and a rising per capita income level. Stern (2004) and Yandle et al. (2004) have provided a summary and discussions of the empirical literature (see also Selden and Song, 1994; Ekins, 1997; the special issue of Ecological Economics, 1998; Stern, 1998, 2002; Ansuategi and Perrings, 2000; Cavlovic et al., 2000; Anderson and Cavendish, 2001; Antweiler et al., 2001; Bulte and van Soest, 2001; Esty, 2001; Dasgupta et al., 2002; Harbaugh et al., 2002; Khanna, 2002; Lieb, 2002; Lindmark, 2002; Kelly, 2003; and Millimet et al., 2003). These studies have shown that there is no single relationship between environmental pollution and per capita income that fits all types of pollutants, regions, and time periods. An important criticism of the empirical studies is that they yield little insight into the mechanisms of the inverted U-shaped relationship. At best, time-trend variables have been taken into account to test for developments unrelated to income (see, for example, Hilton and Levinson, 1998). This trend may reflect technological progress resulting in lower pollution intensities. However, time trends capture several...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.