Economic growth and the diffusion of clean technologies: explaining environmental Kuznets curves
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Date
2005-08
Publication Type
Working Paper
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yes
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Abstract
Production often causes pollution as a by-product. Once environmental degradation becomes too severe, regulation is introduced by which society forces the economy to make a transition to cleaner production processes. We model this transition as a change in general purpose technology" and investigate how it interferes with economic growth driven by quality-improvements. The model gives an explanation for the inverted U-shaped pollution-income relation found in empirical research for many pollutants (Environmental Kuznets Curve). We provide an analytical foundation for the claim that the rise and decline of pollution can be explained by policy-induced technology shifts and intrasectoral changes.
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published
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Volume
05/42
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Publisher
ETH Zurich, Institute of Economic Research (WIF)
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Subject
Environmental Kuznets curve; General purpose technology; Growth; Intrasectoral shifts
Organisational unit
03635 - Bretschger, Lucas (emeritus) / Bretschger, Lucas (emeritus)
02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.