Journal
ENVIRONMENTAL & RESOURCE ECONOMICS
Volume 63, Issue 2, Pages 265-288Publisher
SPRINGER
DOI: 10.1007/s10640-015-9942-9
Keywords
Environmental Kuznets curve; Economic growth; Structural change
Categories
Ask authors/readers for more resources
We provide a very simple macroeconomic investigation of the role that structural changes might play in generating inverted U-shaped income-pollution relationships. Differently from previous research which mainly focuses on empirical, static or general equilibrium models, we develop a standard balanced growth path (BGP) analysis. We show that along the BGP equilibrium an inverted U-shaped income-pollution relationship may occur as a response to structural changes, but whether this is the case or not it will crucially depend upon the magnitude of a production externality parameter. Moreover, we show that the negative relationship between income and pollution can only be a transitory phenomenon, and in the long run pollution will increase as income rises, generating overall an N-shaped pattern.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available