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An Exploration of the Conceptual and Empirical Basis of the Environmental Kuznets Curve

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  • Robert J. Hill
  • Elisabetta Magnani

Abstract

We examine the conceptual and empirical basis of the environmental Kuznets curve. From both perspectives, the relationship lacks firm foundations. In particular, the empirical relationship is shown to be highly sensitive to the choice of pollutant, sample of countries and time period. This strongly suggests that there is an omitted variables problem. We find that two important omitted variables are education and inequality. Also, we show that the observed relationship is sensitive to the measure of income/welfare used. The paper concludes with a discussion of some policy implications of our findings. (JEL O13, Q21, Q28, Q32)

Suggested Citation

  • Robert J. Hill & Elisabetta Magnani, 2002. "An Exploration of the Conceptual and Empirical Basis of the Environmental Kuznets Curve," Australian Economic Papers, Wiley Blackwell, vol. 41(2), pages 239-254, June.
    • Handle: RePEc:bla:ausecp:v:41:y:2002:i:2:p:239-254
    DOI: 10.1111/1467-8454.00162
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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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