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The Simple Analytics of the Environmental Kuznets Curve

James Andreoni () and Arik Levinson ()

No 6739, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: Q00 H4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-env
Date: 1998-09
Note: PE
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Published as 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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