By Michael P. Vogel
Environmental Kuznets Curves - probably the most arguable problems with present environmental economics - recommend that fiscal progress could lead on to environmental caliber advancements. Why and lower than which situations this can be so, are the questions addressed during this ebook. The procedure taken is formal, utilizing suggestions of static and dynamic optimisation. moreover, the most assumptions, arguments and conclusions also are awarded in a non-formel way.
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Additional info for Environmental Kuznets Curves: A Study on the Economic Theory and Political Economy of Environmental Quality Improvements in the Course of Economic Growth
E>oP, pollution increases. 2 emissions reach a constant level. 4 in both figures). 3 highlights the sluggishness of the pollution stock. Emissions reach a maximum and decline thereafter.
Grossman's identity and the conclusions he draws from it will thus be a more suitable starting point for later chapters than Ehrlich and Holdren's identity. 24 2 Economic Determinants ofEnvironmental Quality Changes Therefore the former will now be looked at more closely. 3) where ei are emissions emitted per unit of output in sector i (the sectoral emission intensity), and si is the share of the i-th sector's output in total output F, implying that '2:. i si = 1. g. E = dE / E . Based on this result Grossman [see also Grossman and Krueger (1993), pp.
Even more than Leontief, Grossman highlights the importance of taking into account the sectoral structure of the economy if the sectors differ in their emission intensity of production. 1) reveals that the term "total output" in the former corresponds to the term "population· (goods/population)" in the latter. 2) would be the same as the ratio "emissions/goods" if the sectoral structure was neglected in Grossman's identity. If fact, all three decompositions are quite similar, differing mainly in the emphasis they place on population size and sectoral structure.