The Environmental Kuznets Curve for Sulphur Emissions

Topics: Economics, Economic growth, Simon Kuznets Pages: 4 (945 words) Published: July 31, 2014
The Environmental Kuznets Curve for Sulphur Emissions
Statement of the Problem
In recent years, as increasing concerns about various environmental issues, there are a great number of studies focusing on this topic. One of the most popular approaches is to detect the relationship between pollution level and socio-economic development. This paper will address the problem of whether or not we can find empirical evidence for the environmental Kuznets curve for sulphur emissions. In other words, as a country develops, will sulphur emissions first increase and decrease again after some point in the country’s development? Review of the Literature

The Environmental Kuznets Curve hypothesis claims an inverted-U-shaped relationship between different pollutants and per capita income. In fact, the concept of Environmental Kuznets Curve originates from a famous hypothesis made by Simon Kuznets, which suggested that as per capita income increases, income inequality also increases at first but then, after some turning point, starts declining (Kuznets 1955). There exist a great number of studies about environmental Kuznets curve for sulphur. Although the turning point of sulphur emissions is still debatable, most of them successfully showed convincing empirical evidence that environmental Kuznets curve exists for sulphur emissions (Halkos 2003). Grossman and Krueger (1995) claimed that the turning point in environmental quality usually occurred at income below $8,000 per capital for most pollutants, according to previous results, the turning points of sulphur emissions environmental Kuznets curve range from $3,137 to $101,166 per capita (Halkos 2003). Panayotou (1993) estimated the lowest turning point of $2,894 through his single cross-section data based on the consumption of different fuels under the assumption that emissions coefficients are the same in all countries. However, Selden and Song (1994) provided a turning point about $8,700 by using databases that were...

References: Grossman, Gene M., and Alan B. Krueger, “Economic Growth and the Environment,” Quarterly Journal of Economics 110 (May 1995), 353–377.
Halkos, George (2003), Environmental Kuznets Curve for sulfur: evidence using GMM estimation and random coefficient panel data models, Environment and Development Economics 8: 581–601
Kuznets, Simon. 1955. Economic Growth and Income Inequality. American Economic Review 45(1)
Panayotou T. (1993) Empirical Tests and Policy Analysis of Environmental Degradation at Different Stages of Economic Development, Working Paper WP238, Technology and Employment Programme, International Labour Office, Geneva.
Selden T. M. and D. Song (1994) Environmental quality and development: Is there a Kuznets curve for air pollution? Journal of Environmental Economics and Environmental Management 27, 147-162.
Stern D. I., M. S. Common, and E. B. Barbier (1996) Economic growth and environmental degradation: the environmental Kuznets curve and sustainable development, World Development. 24, 1151-1160.
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