An Exploration of the Conceptual and Empirical Basis of the Environmental Kuznets Curve

16 Pages Posted: 21 May 2002

See all articles by Robert J. Hill

Robert J. Hill

UNSW Australia Business School, School of Economics

Elisabetta Magnani

UNSW Australia Business School, School of Economics

Abstract

We examine the conceptual and empirical basis of the environmental Kuznets curve. From both perspectives, the relationship lacks firm foundations. In particular, the empirical relationship is shown to be highly sensitive to the choice of pollutant, sample of countries and time period. This strongly suggests that there is an omitted variables problem. We find that two important omitted variables are education and inequality. Also, we show that the observed relationship is sensitive to the measure of income/welfare used. The paper concludes with a discussion of some policy implications of our findings.

JEL Classification: O13, Q21, Q28, Q32

Suggested Citation

Hill, Robert James and Magnani, Elisabetta, An Exploration of the Conceptual and Empirical Basis of the Environmental Kuznets Curve. Australian Economic Papers, Vol. 41, pp. 239-254, 2002, Available at SSRN: https://ssrn.com/abstract=313218

Robert James Hill (Contact Author)

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia

Elisabetta Magnani

UNSW Australia Business School, School of Economics ( email )

High Street
Sydney, NSW 2052
Australia
02 9385 3370 (Phone)
02 9313 6337 (Fax)

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