NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Simple Analytics of the Environmental Kuznets Curve

James Andreoni, Arik Levinson

NBER Working Paper No. 6739
Issued in September 1998
NBER Program(s):   PE

Evidence suggests that some pollutants follow an inverse-U-shaped pattern relative to countries' incomes. This relationship has been called the out a simple and straight-forward static model of the microfoundations of the pollution-income relationship. We show that the environmental Kuznets curve can be derived directly from the technological link between consumption of a desired good and abatement of its undesirable byproduct. The inverse-U shape does not depend on the dynamics of growth, political institutions, or even externalities, and can be consistent with a decentralized economy as well as a Pareto efficient policy.

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Document Object Identifier (DOI): 10.3386/w6739

Published: Andreoni, James and Arik Levinson. "The Simple Analytics Of The Environmental Kuznets Curve," Journal of Public Economics, 2001, v80(2,May), 269-286.

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