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The Environmental Kuznets Curve in Small Geographies

Author

Listed:
  • Anita Schiller

    (University Of Dundee)

  • Dakshina De Silva

    (Lancaster University)

  • Robert McComb

    (Texas Tech University)

  • Aurelie Slechten

    (Lancaster University)

Abstract

Finding a theoretical explanation of the Environmental Kuznets Curve (EKC) has been difficult. Given that environmental quality improves as income and consumption increase, ceteris paribus, there must be an increase in remediation/abatement activity. In this paper, we provide theoretical conditions for an existence of a locality-based EKC when both output and abatement expenditures are increasing in income. We validate these predictions empirically using a detailed firm-level dataset in which environmental policies are uniform across locations. We also show that firms engaging in abatement activity tend to locate near polluting firms while income also plays a significant role in location choice.

Suggested Citation

  • Anita Schiller & Dakshina De Silva & Robert McComb & Aurelie Slechten, 2018. "The Environmental Kuznets Curve in Small Geographies," Proceedings of International Academic Conferences 7709293, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:7709293
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    File URL: https://iises.net/proceedings/37th-international-academic-conference-budapest/table-of-content/detail?cid=77&iid=015&rid=9293
    File Function: First version, 2018
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    More about this item

    Keywords

    EKC; Environmental Economics; Agglomeration; Entry and Exit.;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • L00 - Industrial Organization - - General - - - General

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