This is my draft: The environmental Kuznets curve EKC is a hypothesized inverted U-shape relationship between various environmental impact indicators and income per capita.
This apparent paradox raises the question of whether higher income levels result in a better or worse environment. The environmental Kuznets curve EKC hypothesis proposes that there is an inverted U-shaped relationship between various indicators of environmental degradation and income per capita.
This became known as the environmental Kuznets curve because of its similarity with the shape of the income-inequality relationship discovered earlier by Russian-American economist Simon Kuznets.
They found that at low levels of per-capita income, concentrations of sulphur-dioxide, suspended particulate matter, and water pollutants increase as income increases. However, once per-capita income reaches a particular threshold, concentrations of these pollutants decrease as income continues to rise.
The emissions studied by Grossman and Kreuger have local or own-country pollution effects and relatively low abatement costs. Global pollutants such as greenhouse gases represent a second important type of environmental degradation. A study by Douglas Holtz-Eakin and Thomas Selden examined emissions of carbon dioxide, which is a global pollutant.
Their analysis reveals that the emissions continue to rise with income, a finding that is not consistent with the EKC. Deforestation is a third important type of environmental degradation.
Such development is also associated with the use of modern agricultural technology, which reduces land requirements. Logging and the demand for wood as an energy source is likely to grow as a country develops, but this demand may wane as industrialization takes over.
The overall result was a hump-shaped relation between per-capita income and deforestation.
The income at which the rates of deforestation peak is very high. Although it is reassuring that the rates of deforestation level off at sufficiently high per-capita income levels, the major damage to the environment occurs before these income levels are reached.
The income-environment relationship captured by simple regression exercises cannot distinguish between the demand side and supply side forces that drive this relation. Income acts as a surrogate for a variety of underlying influences.
Grossman and Kreuger provide an intuitive explanation of these influences, as outlined below. The Scale of the Economic Activity A larger scale of economic activity per unit of area, all else being equal, results in increased levels of resource use and waste generation.
Here, income acts as an indicator of economic activity, encouraging a positive relation between environmental degradation and income.
The Composition of the Economic Activity Different sectors of the economy have differential pollution and resource use intensities. Industry, especially manufacturing, tends to be more pollution intensive than either agriculture or services.
This influence encourages an inverted U-shaped relationship between environmental pollution and income level.
The Technique Effect At low income levels, people are more concerned with their food and other material needs and less concerned with environmental quality. At higher income levels, people begin to demand higher levels of environmental quality to go with their increased prosperity.
On the supply side, low incomes mean that countries and individuals cannot afford much expenditure on pollution abatement, even if the demand were there. Economic growth not only creates the demand for improved environmental quality, it also makes resources available to supply it, resulting in cleaner technologies.Aug 09, · The environmental Kuznets curve (EKC) is a hypothesized inverted U-shape relationship between various environmental impact indicators and income per capita.
In the early stages of economic growth environmental impacts and pollution increase, but beyond some level of income per capita economic growth leads to environmental improvement. The environmental Kuznets curve suggests that economic development initially leads to a deterioration in the environment, but after a certain level of economic growth, a society begins to improve its relationship with the environment and levels of environmental degradation reduces.
From a very. The impact of economic growth on environment has been a much debated topic among the economists and policy makers across the globe. From early 90’s estimation of Environmental Kuznets Curve (EKC) hypothesis emerged as a popular paradigm in academic .
In Search of a Sulphur Dioxide Environmental Kuznets Curve: A Bayesian Model Averaging Approach* Jeffrey Begun University of Washington Theo S. Eicher. The environmental Kuznets curve (EKC) hypothesis proposes that there is an inverted U-shape relation between environmental degradation and income per capita.
Various explanations for this. Abstract: Soil health, along with water supply, is the most valuable resource for humans, as human life depends on the soil’s generosity.
Soil degradation, therefore, poses a threat to food security, as it reduces yield, forces farmers to use more inputs, and may eventually lead to soil abandonment.