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A note on ‘the simple analytics of the Environmental Kuznets Curve’

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  • PLASSMANN, FLORENZ
  • KHANNA, NEHA

Abstract

In a widely cited paper, Andreoni and Levinson (2001) argue that, under very mild restrictions on preferences, increasing returns to scale in pollution abatement are a sufficient condition for pollution to ultimately fall to zero with income growth. We show that the existence of an Environmental Kuznets Curve depends on the relative magnitudes of the returns to scale in abatement and in gross pollution, rather than on their absolute values. Increasing returns to scale in abatement by themselves are not sufficient for pollution to fall with income unless the returns to scale of abatement exceed the returns to the production of gross pollution.

Suggested Citation

  • Plassmann, Florenz & Khanna, Neha, 2006. "A note on ‘the simple analytics of the Environmental Kuznets Curve’," Environment and Development Economics, Cambridge University Press, vol. 11(6), pages 697-707, December.
    • Handle: RePEc:cup:endeec:v:11:y:2006:i:06:p:697-707_00
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    Cited by:

    1. Brajer, Victor & Mead, Robert W. & Xiao, Feng, 2008. "Health benefits of tunneling through the Chinese environmental Kuznets curve (EKC)," Ecological Economics, Elsevier, vol. 66(4), pages 674-686, July.
    2. Martin F. Quaas & Sjak Smulders, 2008. "Pollution and the Efficiency of Urban Growth," Working Papers 2008.75, Fondazione Eni Enrico Mattei.
    3. 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.

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