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Environmental Sustainability and Income: Evidence from Cross-Country Analysis

Kuldeep Singh

Abstract



There are various types of relationships between per capita income and different environmental indicators and Environmental Kuznets Curve is one of them. Some very clear patterns of relationship between environmental degradation and income emerge from the analysis. Most of the environmental indicators improve with rising income. A monotonic decrease of environmental degradation along a country’s development path suggests that policies that accelerate economic growth also lead to rapid environmental improvements. ‘Agricultural methane emissions’, ‘agricultural nitrous oxide emissions’, ‘forest area’ and ‘bird species threatened’ have inverted U type relationship with income. These indicators improve after the turning point when incomes are higher. Before that point, at lower income levels, environmental quality deteriorates as income began to rise. Other indicators like ‘carbon dioxide emissions’, ‘other green house gases emissions’, ‘HFC gas emissions’, ‘industrial nitrous oxide emissions’, ‘organic water pollutant’ and ‘fish species threatened’ have inverted N type relationship with income. In these indicators improvement begins after the second turning point at a much higher per capita income level. So the Environmental Kuznets Curve hypothesis is supported by the study for ten environmental indicators.

Keywords


Environment, Economic Growth, Environmental Degradation.

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