A note on ‘the simple analytics of the Environmental Kuznets Curve’

2006 ◽  
Vol 11 (6) ◽  
pp. 697-707 ◽  
Author(s):  
FLORENZ PLASSMANN ◽  
NEHA KHANNA
Keyword(s):  
Environmental Kuznets Curve ◽  
Pollution Abatement ◽  
Returns To Scale ◽  
Increasing Returns ◽  
Income Growth ◽  
Kuznets Curve ◽  
Sufficient Condition ◽  
Increasing Returns To Scale

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.

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

2001 ◽  
Vol 6 (3) ◽  
pp. 283-311 ◽  
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.

scholarly journals Returns to Scale for EU Regions – evidence from the spatial panel model

2017 ◽  
Vol 3 (329) ◽  
Author(s):  
Alicja Anna Olejnik
Keyword(s):  
Fixed Effects ◽  
Regional Growth ◽  
Returns To Scale ◽  
Increasing Returns ◽  
Increasing Returns To Scale ◽  
Spatial Panel ◽  
Panel Model ◽  
Eu Regions ◽  
Spatial Panel Model ◽  
The Eu

Recent findings emphasise the importance of localised returns to scale for the regional growth as well as for the agglomeration processes. However, it is still not well established whether returns to scale are constant or increasing, and to what extent. Therefore, in this study we apply specification which describes the productivity growth with the growth of output through the Verdoorn’s law. This study aims to provide some new estimates of the degree of returns to scale for EU regions. Our findings show that the hypothesis of increasing returns to scale is still valid in today’s EU economy. To test the hypothesis, we have employed the Multidimensional Spatial Panel Durbin Model with Spatial Fixed Effects. The research is conducted for 261 regions of the EU 28. The paper concludes that increasing returns to scale in EU regions are substantial.

Network Effects

2010 ◽  
pp. 1007-1013
Author(s):  
Erik den Hartigh
Keyword(s):  
Network Effects ◽  
Returns To Scale ◽  
Increasing Returns ◽  
Increasing Returns To Scale ◽  
The Subject

From the 1980s, network effects attracted a lot of interest in economics and management sciences. This was mainly due to the work of Arthur (e.g., 1988, 1989, 1990). While the subject of increasing returns to scale in companies had a long tradition in economics, network effects (i.e., increasing returns in markets) had hardly been addressed.

An Empirical Investigation of Environmental Kuznets Curve in Nigeria

2010 ◽  
Vol 1 (2) ◽  
pp. 31-39 ◽  
Author(s):  
Folorunso Sunday Ayadi
Keyword(s):  
Population Density ◽  
Environmental Degradation ◽  
Environmental Kuznets Curve ◽  
Empirical Investigation ◽  
Income Growth ◽  
Kuznets Curve ◽  
Environmental Objectives ◽  
Lower Stage ◽  
Different Shapes ◽  
The Relationship

The possibility of the existence of environmental Kuznet curve (EKC) has been debated extensively in the literature. The reality of EKC is that, by pursuing growth in income, environmental objectives can be simultaneously accomplished without initiating extra intervention tools. Various studies have been conducted on the existence of EKC without any consensus. Therefore, in this paper, the author analyzes whether or not EKC exists and its shape. In this study, the author uses an explanatory variable to in the model, which is population density, showing the level of resilience of the environment to pollution. However, this research found that at the lower stage of income, environmental degradation declined with income growth, rises as income grew further, then declined. However, income did not contribute significantly toward the explanation of environmental degradation like population density. This research found no synergies between addressing poverty and environmental problems in Nigeria. Therefore, complementary environmental policies must be put in place when addressing poverty. Lastly, there are different shapes of the relationship between income growth and various measures of pollution and environmental degradation, and developing countries must recognize that no one size fits all in this relationship.

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

2019 ◽  
Vol 25 (1) ◽  
pp. 44-65 ◽  
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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