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Erschienen in:
Introduction Kapitel lesen Erstes Kapitel lesen

2016 | OriginalPaper | Buchkapitel

2. Environmental Kuznets Curve Hypothesis

verfasst von : Katsuhisa Uchiyama

Erschienen in: Environmental Kuznets Curve Hypothesis and Carbon Dioxide Emissions

Verlag: Springer Japan

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Abstract

This chapter deals with the environmental Kuznets curve (EKC) hypothesis, as one hypothesis that speaks to the possibility of sustainable development; this chapter also provides a brief overview and current research trends. The EKC hypothesis implies there is an inverted U-shaped relationship between environment degradation and economic development. The concept of the EKC originally began with data observation, and has attracted considerable attention from many researchers concerning the existence of the EKC—since it is very naive—and the thinking that relates to it. This chapter also surveys the main EKC research, which has been undertaken from both empirical and theoretical perspectives. As for the empirical perspective, the author compares previous studies that focus on the income level inherent in the EKC turning point. From the theoretical perspective, the author briefly introduces the Stokey (International Economic Review, 39, 1–31, [43]) model, which addresses stock pollutants. Finally, the author takes up criticisms and problems inherent in previous empirical and theoretical studies of the EKC.

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Vorheriges Kapitel Introduction
Nächstes Kapitel Empirical Analysis of the Environmental Kuznets Curve
Fußnoten
1
For instance, see Environment and Development Economics, Vol. 2, Part 4, 1997, and Ecological Economics, Vol. 25, No. 2, 1998.
 
2
As mentioned in Sect. 2.5, many problems have been pointed out with regard to the EKC.
 
3
Some empirical studies employ per-income CO\(_2\) emissions as a dependent variable. However, this is an index of energy efficiency, and so it may be inappropriate as an index of environmental degradation level.
 
4
Grossman and Krueger [22] and Vincent [45] each employed a cubic polynomial model while assuming an N-shaped EKC; each obtained statistically significant results. As shown in Fig. 2.3, the Japanese CO\(_2\) data seem to illustrate an N-shaped curve.
 
5
Previous empirical studies investigated only CO\(_2\) emissions; to the best of the author’s knowledge, no research has been undertaken that considers the source of CO\(_2\) absorption.
 
6
Other classifications commonly seen are macroeconomic versus microeconomic, long-term versus short-term, and deterministic versus stochastic, among others [25].
 
7
Stokey [43] adopts the AK model with an environmental constraint to models (a) and (b). According to these models, the economy converges to the steady state, in which the growth rates of all the variables are zero as a result. This is because, as shown later, the marginal productivity of capital (\(\partial Y(t) / \partial K(t) = \partial (AK(t)z(t)) / \partial K(t) = Az(t)\)) monotonically decreases as z(t) monotonically decreases over time. This means that the long-term growth rate of the economy becomes zero and sustainable development becomes infeasible. To modify this, exogenous technological progress is introduced to models (c) and (d). The exogenous technological progress brings about increased productivity, and compensates for the fall in z(t); hence, the growth rate becomes positive in the steady state.
 
8
If \(\eta =1\), this refers to the specific case of flow-type pollution, since the pollution stock will be removed during this term.
 
9
As is obvious from Eqs. (2.13) and (2.14), \(\eta \) is not included in either the long-run growth rate or the change rate of pollutant emissions. That is, whether the pollution type is flow or stock does not matter with respect to the long-run growth rate or the change rate of pollutant emissions. In addition, the depreciation rate, \(\delta \), has no impact on them, either.
 
10
Arrow et al. [4], p. 520.
 
11
See Selden and Song [36] and Holtz-Eakin and Selden [23].
 
12
Even if the EKC of CO\(_2\) were to exist, there are many criticisms that it merely reflects energy-saving after the oil crisis, rather than emissions-reduction efforts.
 
13
Suri and Chapman [44] and Cole [7, 8] each add a trade indicator to their explanatory variables. Richmond and Kaufmann [34] employ an energy consumption variable. Neumayer [30] considers natural factors such as temperature.
 
14
Coondoo and Dinda [10] adopt a Granger causality test for income and CO\(_2\) emissions, using 1960–1990 data. They report no causality, or causality from income to CO\(_2\) emissions, in developing countries, as well as causality from CO\(_2\) emissions to income in advanced countries.
 
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Metadaten
Titel
Environmental Kuznets Curve Hypothesis
verfasst von
Katsuhisa Uchiyama
Copyright-Jahr
2016
Verlag
Springer Japan
Buch
Environmental Kuznets Curve Hypothesis and Carbon Dioxide Emissions

Print ISBN: 978-4-431-55919-1

Electronic ISBN: 978-4-431-55921-4

Copyright-Jahr: 2016

DOI
https://doi.org/10.1007/978-4-431-55921-4_2

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