The Environmental Kuznets Curve in Small Geographies

Anita Schiller (), Dakshina De Silva, Robert McComb () and Aurelie Slechten ()
Additional contact information
Anita Schiller: University Of Dundee
Robert McComb: Texas Tech University
Aurelie Slechten: Lancaster University

No 7709293, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: Finding a theoretical explanation of the Environmental Kuznets Curve (EKC) has been difficult. Given that environmental quality improves as income and consumption increase, ceteris paribus, there must be an increase in remediation/abatement activity. In this paper, we provide theoretical conditions for an existence of a locality-based EKC when both output and abatement expenditures are increasing in income. We validate these predictions empirically using a detailed firm-level dataset in which environmental policies are uniform across locations. We also show that firms engaging in abatement activity tend to locate near polluting firms while income also plays a significant role in location choice.

Keywords: EKC; Environmental Economics; Agglomeration; Entry and Exit. (search for similar items in EconPapers)
JEL-codes: L00 Q50 R00 (search for similar items in EconPapers)
Pages: 1 page
Date: 2018-07
New Economics Papers: this item is included in nep-env and nep-res
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Published in Proceedings of the Proceedings of the 37th International Academic Conference, Budapest, Jul 2018, pages 63-63

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:7709293

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