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Does S. Kuznets's belief question the Environmental Kuznets Curves?

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  • Alain Bousquet
  • Pascal Favard

Abstract

. This paper examines the link between pollution and income. The main purpose is to assess whether the introduction of income inequality in a Environmental Kuznets Curve (EKC) analysis can give new insights into the relationship between pollution and economic growth. The EKC hypothesis proposes that there is an inverted U‐shape relation between environmental degradation and income per capita. We question this common result, in a simple model where the income inequality evolution is exogenous and where the planner could use only one instrument. For a set of parameter values we find, for example, a two‐hump curve. JEL classification: D3, H4, Q2. Est‐ce que le postulat de S. Kuznets remet en question les courbes environnementales à la Kuznets? Cet article analyse la relation entre pollution et revenu. L’objectif de cet article est de montrer comment la prise en compte de l’inégalité des revenus, dans une analyse de la courbe environnementale de Kuznets, peut modifier la relation entre pollution et croissance. L’hypothèse de la courbe environnementale de Kuznets revient à supposer l’existence d’une forme en U inversé entre la dégradation de l’environnement et le revenu par tête. Cet article remet en cause ce résultat à l’aide d’un modèle simple dans lequel l’inégalité du revenu évolue de manière exogène et où le planificateur ne peut utiliser qu’un seul instrument. Pour certaines valeurs des paramètres du modèle nous trouvons que la relation entre la pollution et le revenu suit une courbe à deux bosses.

Suggested Citation

  • Alain Bousquet & Pascal Favard, 2005. "Does S. Kuznets's belief question the Environmental Kuznets Curves?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 604-614, May.
  • Handle: RePEc:wly:canjec:v:38:y:2005:i:2:p:604-614
    DOI: 10.1111/j.0008-4085.2005.00294.x
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    References listed on IDEAS

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    Cited by:

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    2. Sencer Atasoy, Burak, 2017. "Testing the environmental Kuznets curve hypothesis across the U.S.: Evidence from panel mean group estimators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 731-747.
    3. Jingling Chen & Tao Eric Hu & Rob van Tulder, 2019. "Is the Environmental Kuznets Curve Still Valid: A Perspective of Wicked Problems," Sustainability, MDPI, vol. 11(17), pages 1-17, August.
    4. Aslanidis, Nektarios, 2009. "Environmental Kuznets Curves for Carbon Emissions: A Critical Survey," Working Papers 2072/15847, Universitat Rovira i Virgili, Department of Economics.

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    More about this item

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • H4 - Public Economics - - Publicly Provided Goods
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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