On a clear day you might see an environmental Kuznets curve
2007
Johansson, Per-Olov | Kriström, Bengt
We shed some new light on the Environmental Kuznets curve (EKC) and show how it can be viewed as a particular form of equilibrium relationship, where technology and preference parameters determine the shape of the curve. In contrast to most of the literature on the EKC, we estimate a theoretically consistent model on long-run data (Swedish sulfur emission, covering the period 1900-2002). Furthermore, we test and date structural change. The model suggests four regimes, 1900-1918, 1919-1933, 1934-1967 and 1968-2002, generating four rather different patterns for pollution over time. The policy-conclusions are consonant with Pearce's general view about the EKC: there is no theoretical presumption that it has an inverted U shape, nor should any country try to “grow out of the environmental problems” without analyzing the benefits and costs of so doing.
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