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Quantifying Central Hypotheses on Environmental Kuznets Curves for a Rich Economy: A Computable General Equilibrium Study
Author(s) -
Bruvoll Annegrete,
Fæhn Taran,
Strøm Birger
Publication year - 2003
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/1467-9485.5002003
Subject(s) - computable general equilibrium , economics , kuznets curve , pollutant , per capita , consumption (sociology) , environmental quality , general equilibrium theory , natural resource economics , production (economics) , econometrics , macroeconomics , ecology , population , social science , demography , sociology , biology
We investigate whether the future relationships between several pollutants and per capita income in rich countries may assume the inverted U‐forms of Environmental Kuznets Curves (EKC). The emission‐augmenting effect of scaling up aggregate economic activity can be counteracted by greener composition of production and consumption, technological progress, and increased demand for environmental quality and policy. To quantify the importance of these central hypotheses, we use a CGE model with endogenous policy for Norway. Our results suggest significant future effects of all these three counteracting mechanisms. For most local and regional pollutants, they may be strong enough to prolong the falling emission trends. However, we cannot rely on reductions in emissions of climate gases and some transport‐related local pollutants. Our results also indicate that pollution leakages abroad are likely to take place.