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The Simple Analytics of the Environmental Kuznets Curve

James Andreoni
University of California, San Diego (UCSD)

Arik Levinson
Georgetown University - Department of Economics; National Bureau of Economic Research (NBER)


September 1998


Abstract:     
Evidence suggests that some pollutants follow an inverse-U-shaped pattern relative to countries' incomes. This relationship has been called the "environmental Kuznets curve." This paper lays out a simple and straight-forward static model of the microfoundations of the pollution-income relationship. We sho that the environmental Kuznets curve can be derived directly from the technological link between consumption of a desired good and abatement of its undesirable byproduct. The inverse-U shape does not depend on the dynamics of growth, political institutions, or even externalities, and can be consistent with a decentralized economy as well as a Pareto efficient policy.

Working Paper Series

Date posted: November 14, 1998 ; Last revised: November 14, 1998

Suggested Citation

Andreoni, James and Levinson, Arik M., The Simple Analytics of the Environmental Kuznets Curve (September 1998). Available at SSRN: http://ssrn.com/abstract=132949 or doi:10.2139/ssrn.132949


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Contact Information

Arik M. Levinson (Contact Author)
Georgetown University - Department of Economics ( email )
Washington, DC 20057
United States
202-687-5571 (Phone)
202-687-6102 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
James Andreoni
University of California, San Diego (UCSD) ( email )
9500 Gilman Drive
La Jolla, CA 92093-0508
United States
HOME PAGE: http://econ.ucsd.edu/~jandreon/
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