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| Author: | Khanna, N. Plassman, F. |
| Title: | The demand for environmental quality and the environmental Kuznets Curve hypothesis |
| Journal: | Ecological Economics
2004 : DEC, VOL. 51:3-4, p. 225-236 |
| Index terms: | Environmental quality Incomes Pollution Consumption Production USA |
| Language: | eng |
| Abstract: | In the Environmental Kuznets Curve (EKC) hypothesis the relationship btw. income and pollution is an inverted-U-shape curve. This article examines the effects of the demand for environmental quality on the income-pollution relationship by focusing on the nature of pollutants and the possibility of spatially separate consumption and production. Examining five pollutants in the USA it is argued that where spatial separation is possible, at relatively low income levels the equilibrium income elasticity of pollution changes from positive to negative. Where separation is impossible, the pollution stays positive until high income levels are reached. |
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