The Simple Analytics of the Environmental Kuznets Curve

22 Pages Posted: 10 Jun 2000 Last revised: 2 Dec 2022

See all articles by James Andreoni

James Andreoni

University of California, San Diego (UCSD)

Arik Levinson

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

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Date Written: September 1998

Abstract

Evidence suggests that some pollutants follow an inverse-U-shaped pattern relative to countries' incomes. This relationship has been called the out a simple and straight-forward static model of the microfoundations of the pollution-income relationship. We show 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.

Suggested Citation

Andreoni, James and Levinson, Arik M., The Simple Analytics of the Environmental Kuznets Curve (September 1998). NBER Working Paper No. w6739, Available at SSRN: https://ssrn.com/abstract=226379

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Arik M. Levinson

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