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Pollution-Income Dynamics

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  • López, Ramón E.
  • Yoon, Sang W.

Abstract

This paper shows that the dynamic properties of the pollution-income relationship under an optimal pollution tax depends on three key factors, namely the degree of temporal and inter-temporal flexibility in consumption and the elasticity of substitution among production inputs. This paper derives general conditions for eluding the limits to growth showing that they require rather stringent assumptions which the existing literature has failed to identify.

Suggested Citation

  • López, Ramón E. & Yoon, Sang W., 2014. "Pollution-Income Dynamics," Working Papers 166072, University of Maryland, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:umdrwp:166072
    DOI: 10.22004/ag.econ.166072
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    References listed on IDEAS

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    1. Andreoni, James & Levinson, Arik, 2001. "The simple analytics of the environmental Kuznets curve," Journal of Public Economics, Elsevier, vol. 80(2), pages 269-286, May.
    2. Figueroa B., Eugenio & Pasten, Roberto, 2013. "A tale of two elasticities: A general theoretical framework for the environmental Kuznets curve analysis," Economics Letters, Elsevier, vol. 119(1), pages 85-88.
    3. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    4. Stokey, Nancy L, 1998. "Are There Limits to Growth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(1), pages 1-31, February.
    5. Per-Olov Johansson & Bengt Kriström, 2007. "On a clear day you might see an environmental Kuznets curve," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 77-90, May.
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    Citations

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    Cited by:

    1. David I. Stern, 2017. "The environmental Kuznets curve after 25 years," Journal of Bioeconomics, Springer, vol. 19(1), pages 7-28, April.
    2. López, Ramón E. & Yoon, Sang W., 2020. "Sustainable development: Structural transformation and the consumer demand," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 22-38.
    3. Zhang, Wenwen & Chiu, Yi-Bin, 2020. "Do country risks influence carbon dioxide emissions? A non-linear perspective," Energy, Elsevier, vol. 206(C).
    4. Erik Hille & Bernhard Lambernd & Aviral K. Tiwari, 2021. "Any Signs of Green Growth? A Spatial Panel Analysis of Regional Air Pollution in South Korea," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(4), pages 719-760, December.
    5. Eugenio Figueroa & Ramón E. López & Gino Sturla, 2019. "Efficient Water Allocation when Climate is Changing: An interdisciplinary approach," Working Papers wp489, University of Chile, Department of Economics.
    6. Figueroa, Eugenio & Pastén, Roberto, 2015. "Beyond additive preferences: Economic behavior and the income pollution path," Resource and Energy Economics, Elsevier, vol. 41(C), pages 91-102.
    7. Mare Sarr & Tim Swanson, 2017. "Will Technological Change Save the World? The Rebound Effect in International Transfers of Technology," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(3), pages 577-604, March.
    8. Chiu, Yi-Bin, 2017. "Carbon dioxide, income and energy: Evidence from a non-linear model," Energy Economics, Elsevier, vol. 61(C), pages 279-288.
    9. López, Ramón E. & Yoon, Sang W., 2016. "Sustainable growth with irreversible stock effects of renewable resources," Economics Letters, Elsevier, vol. 147(C), pages 153-156.

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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