EconPapers    
Economics at your fingertips  
 

Environmental Engel Curves

Arik Levinson () and James O'Brien

No 20914, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Environmental Engel curves (EECs) plot the relationship between households’ incomes and the pollution embodied in the goods and services they consume. They provide a basis for estimating the degree to which observed environmental improvements, which come in part from changing consumption patterns, can be attributed to income growth. We calculate a set of annual EECs for the United States from 1984 to 2002, revealing three clear results. First, EECs are upward sloping: richer households are indirectly responsible for more pollution. Second, EECs are convex, with income elasticities of less than one. Third, EECs have been shifting down over time: at every level of income households are responsible for decreasing amounts of pollution. We show that even without changes to production techniques, the pollution necessary to produce the goods and services American households consume would have declined 5 to 8 percent, despite a 13 percent increase in real household incomes. Most of this improvement is attributable to households consuming a less pollution-intensive mix of goods, driven about equally by two factors: household income growth represented by movement along convex EECs; and economy-wide changes represented by downward shifts in EECs.

JEL-codes: Q56 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene and nep-env
Date: 2015-01
Note: EEE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.nber.org/papers/w20914.pdf (application/pdf)

Related works:
Working Paper: Environmental Engel Curves (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:20914

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w20914

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-04-09
Handle: RePEc:nbr:nberwo:20914