A new approach to pollution modelling in models of the environmental Kuznets curve

Hannes Egli

No 05/39, CER-ETH Economics working paper series from CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich

Abstract: Models of the Environmental Kuznets Curve, particularly those with an ex- plicit abatement technology, often involve that pollution becomes negative in the long run. This, of course, is a highly implausible prediction. The paper at hand examines the problem of negative pollution by, ¯rst, critically discussing two approaches adopted in existing EKC models and, second, by proposing a new approach. Motivated by the debatable assumption of perpetually increas- ing returns to scale in abatement, the idea of fading increasing returns to scale is introduced. This procedure does not only constitute a solution to the theo- retical problem of negative pollution, but also does well regarding the empirical plausibility of the abatement technology.

Keywords: environmental Kuznets curve; negative pollution; abatement technology; increasing returns to scale (search for similar items in EconPapers)
JEL-codes: Q2 Q5 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2005-05
New Economics Papers: this item is included in nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: A New Approach to Pollution Modelling in Models of the Environmental Kuznets Curve (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:eth:wpswif:05-39

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