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Dynamic Simulation and Environmental Policy Analysis: Beyond Comparative Statistics and the Environmental Kuznets Curve

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  • Anderson, Dennis
  • Cavendish, William

Abstract

This paper presents a dynamic simulation model for the quantitative analysis of environmental policy, incorporating key features of technical progress in abatement and an explicit role for policy in determining costs and pollution over time. The model is used to develop scenarios for PM, SO2, and CO2 abatement in developing countries, and the results are compared with those that emerge from studies of Environmental Kuznets Curves (EKC) of economic growth and pollution. The latter, by neglecting the roles of policy and technical progress in pollution abatement, underestimate dramatically the possibilities for countries to reduce pollution while raising incomes. Copyright 2001 by Oxford University Press.

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  • Anderson, Dennis & Cavendish, William, 2001. "Dynamic Simulation and Environmental Policy Analysis: Beyond Comparative Statistics and the Environmental Kuznets Curve," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 721-746, October.
    • Handle: RePEc:oup:oxecpp:v:53:y:2001:i:4:p:721-46
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    Cited by:

    1. Kijima, Masaaki & Nishide, Katsumasa & Ohyama, Atsuyuki, 2011. "EKC-type transitions and environmental policy under pollutant uncertainty and cost irreversibility," Journal of Economic Dynamics and Control, Elsevier, vol. 35(5), pages 746-763, May.
    2. Managi, Shunsuke, 2006. "Are there increasing returns to pollution abatement? Empirical analytics of the Environmental Kuznets Curve in pesticides," Ecological Economics, Elsevier, vol. 58(3), pages 617-636, June.
    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.
    4. Janine De Fence & Nick Hanley & Karen Turner, 2009. "Do Productivity Improvements Move Us Along the Environmental Kuznets Curve?," Working Papers 0908, University of Strathclyde Business School, Department of Economics.
    5. Megha Jain & Aishwarya Nagpal, 2019. "Relationship Between Environmental Sustainability and Human Development Index: A Case of Selected South Asian Nations," Vision, , vol. 23(2), pages 125-133, June.
    6. Annegrete Bruvoll & Taran Fæhn & Birger Strøm, 2003. "Quantifying Central Hypotheses on Environmental Kuznets Curves for a Rich Economy: A Computable General Equilibrium Study," Scottish Journal of Political Economy, Scottish Economic Society, vol. 50(2), pages 149-173, May.
    7. Weixin Yang & Lingguang Li, 2017. "Energy Efficiency, Ownership Structure, and Sustainable Development: Evidence from China," Sustainability, MDPI, vol. 9(6), pages 1-26, June.
    8. Bond, Craig A. & farzin, Hossein, 2004. "Freedom from Pollution? The State, The People, and the Environmental Kuznets Curve," Working Papers 190904, University of California, Davis, Department of Agricultural and Resource Economics.
    9. Farzin, Y. Hossein & Bond, Craig A., 2006. "Democracy and environmental quality," Journal of Development Economics, Elsevier, vol. 81(1), pages 213-235, October.
    10. Dubois, Ghislain & Peeters, Paul & Ceron, Jean-Paul & Gössling, Stefan, 2011. "The future tourism mobility of the world population: Emission growth versus climate policy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 1031-1042.
    11. Ranganathan, Shyam & Bali Swain, Ranjula, 2014. "Analysing Mechanisms for Meeting Global Emissions Target - A Dynamical Systems Approach," Working Paper Series 2014:10, Uppsala University, Department of Economics.
    12. Atif Awad & Hoda Abugamos, 2017. "Income-carbon Emissions Nexus for Middle East and North Africa Countries: A Semi-parametric Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 7(2), pages 152-159.
    13. Atif Awad & Mohammed Hersi Warsame, 2017. "Climate Changes in Africa: Does Economic Growth Matter? A Semi-parametric Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 1-8.
    14. Inmaculada Martínez-Zarzoso & Aurelia Bengochea-Morancho, 2003. "Testing for an environmental Kuznets curve in Latin-American countries," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 18(1), pages 3-26, June.
    15. Runa Sarkar, 2008. "Public policy and corporate environmental behaviour: a broader view," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(5), pages 281-297, September.
    16. Mazzanti, Massimiliano & Musolesi, Antonio & Zoboli, Roberto, 2006. "A Bayesian Approach to the Estimation of Environmental Kuznets Curves for CO2 Emissions," Climate Change Modelling and Policy Working Papers 12057, Fondazione Eni Enrico Mattei (FEEM).
    17. Alvarez-Herranz, Agustin & Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Cantos, José María, 2017. "Energy innovation and renewable energy consumption in the correction of air pollution levels," Energy Policy, Elsevier, vol. 105(C), pages 386-397.
    18. Turner, Karen & Hanley, Nick, 2011. "Energy efficiency, rebound effects and the environmental Kuznets Curve," Energy Economics, Elsevier, vol. 33(5), pages 709-720, September.
    19. Bhattarai, Gandhi Raj & Hite, Diane & Hatch, L. Upton & Thompson, Henry, 2003. "Endogenous Growth Models And The Environmental Kuznets Curve: An Analysis Of Global Environmental Sustainability," 2003 Annual meeting, July 27-30, Montreal, Canada 22212, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Zhimin Zhou & Xinyue Ye & Xiangyu Ge, 2017. "The Impacts of Technical Progress on Sulfur Dioxide Kuznets Curve in China: A Spatial Panel Data Approach," Sustainability, MDPI, vol. 9(4), pages 1-27, April.
    21. Jie He, 2007. "Is the Environmental Kuznets Curve hypothesis valid for developing countries? A survey," Cahiers de recherche 07-03, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    22. Sekar, I. & McGarigal, K. & Finn, J.T. & Ryan, R. & Randhir, T.O., 2009. "Water Quality Response to Economic Development: Quantifying Environmental Kuznets Curve," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(1), pages 1-16.
    23. Balsalobre Lorente, Daniel & Álvarez-Herránz, Agustín & Baños Torres, José, 2016. "La innovación y la sustitución energética como medidas de corrección medioambiental en países de la OCDE/Innovation and Energy Substitution as Measures of Environmental Correction in OECD Countries," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 34, pages 235-260, Enero.
    24. Wang, Yuan & Han, Rong & Kubota, Jumpei, 2016. "Is there an Environmental Kuznets Curve for SO2 emissions? A semi-parametric panel data analysis for China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1182-1188.

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