Are there increasing returns to pollution abatement? Empirical analytics of the Environmental Kuznets Curve in pesticides

In a widely cited paper, Andreoni and Levinson (2001) argue that, under very mild restrictions on preferences, increasing returns to scale in pollution abatement are a sufficient condition for pollution to ultimately fall to zero with income growth. We show that the existence of an Environmental Kuznets Curve depends on the relative magnitudes of the returns to scale in abatement and in gross pollution, rather than on their absolute values. Increasing returns to scale in abatement by themselves are not sufficient for pollution to fall with income unless the returns to scale of abatement exceed the returns to the production of gross pollution.

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Technical progress and pollution abatement: an economic view of selected technologies and practices

Environment and Development Economics ◽

10.1017/s1355770x01000171 ◽

2001 ◽

Vol 6 (3) ◽

pp. 283-311 ◽

Cited By ~ 11

Author(s):

Dennis Anderson

Keyword(s):

Water Pollution ◽

Developing Countries ◽

Technical Progress ◽

Pollution Control ◽

Environmental Kuznets Curve ◽

Pollution Abatement ◽

Kuznets Curve ◽

Industrial Countries ◽

Economic View ◽

Per Capita

The paper first presents evidence from the engineering literature on air and water pollution control, which shows that, when the pollution abatement technologies are in place, large reductions in pollution have been achieved at costs that are small relative to the costs of production. A simulation model is then developed to study the effects of technical progress on pollution abatement, and applied to particular cases in developing countries. The results are compared with the projections of an environmental Kuznets curve: they reproduce the latter if policies were not to be introduced until per capita incomes reached levels comparable to those of the industrial countries when they first introduced their policies; but show dramatically lower and earlier peaks if policies were to be introduced earlier. The conclusion is shown to apply more generally, and it is argued that developing countries can aspire to addressing their environmental problems at a much earlier phase of development than the industrial countries before them.

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Output and pollution abatement in a U.S. state emission function

Environment and Development Economics ◽

10.1017/s1355770x19000172 ◽

2019 ◽

Vol 25 (1) ◽

pp. 44-65 ◽

Cited By ~ 1

Author(s):

Neophyta Empora ◽

Theofanis P. Mamuneas ◽

Thanasis Stengos

Keyword(s):

Environmental Kuznets Curve ◽

Policy Making ◽

Driving Forces ◽

Pollution Abatement ◽

State Level ◽

Kuznets Curve ◽

Nonlinear Relationship ◽

Level Data ◽

The Relationship ◽

Emission Function

AbstractUsing U.S. state-level data for the period 1973–1994, this study models the relationship between emissions, output and pollution abatement by defining an emissions function, in a manner that is consistent with the residual (emissions) generation mechanism and firms' optimizing behavior. It thus accounts for factors that were previously unaccounted for or addressed only individually. Applications using this comprehensive setting can offer more informed insights for policy-making, something that is particularly useful for developing countries that face the environmental degradation that comes together with the benefits of economic growth. Using nonparametric econometric techniques as well as threshold regression, the empirical results show that there is a positive nonlinear relationship between emissions and output, rejecting an inverted-U type of relationship between the two (the Environmental Kuznets Curve, or EKC). In the absence of abatement the relationship turns around, verifying the arguments in the literature that abatement is one of the driving forces for an EKC to emerge.

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Development, trade, and the environment: how robust is the Environmental Kuznets Curve?

Environment and Development Economics ◽

10.1017/s1355770x0300305 ◽

2003 ◽

Vol 8 (4) ◽

pp. 557-580 ◽

Cited By ~ 94

Author(s):

Matthew A. Cole

Keyword(s):

Trade Liberalization ◽

Environmental Kuznets Curve ◽

Pollution Abatement ◽

Kuznets Curve ◽

Trade Patterns ◽

Factor Endowments ◽

Trade And The Environment ◽

Country Characteristics ◽

The Impact ◽

Relative Factor

This paper assesses the strength of the Environmental Kuznets Curve (EKC) which posits an inverted-U relationship between per capital income and pollution. Specifically, answers are sought to the following related questions: (1) How robust is the EKC relationship?; (2) To what extent can the EKC relationship be explained by changing trade patterns as opposed to growth-induced pollution abatement? With regard to question (1), the alleged weaknesses with the EKC are assessed and new EKCs are estimated using more appropriate econometric techniques. Turning to question (2), it is argued that the impact of trade liberalization on the environment will differ from country to country depending on whether or not they have a comparative advantage in pollution-intensive production. In turn, it is argued that this depends on a country's relative factor endowments and/or its relative environmental regulations. EKCs are therefore estimated in a manner that allows the impact of trade liberalization on pollution to depend on these country characteristics. The results indicate that the inverted-U relationship between per capita income and emissions is reasonably robust and little evidence is found to suggest that trade patterns are a significant determinant of the inverted-U shape.

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