Does economic growth inevitably lead to environmental degradation? This paper investigates the relationship between per capita income and environmental quality, using cross-country panel data to analyze various environmental indicators. The authors address weaknesses in previous studies of the Environmental Kuznets Curve (EKC), offering a refined perspective on this complex relationship. The research suggests that meaningful EKCs exist primarily for local air pollutants, indicating that pollution initially increases with income but eventually declines as nations become wealthier. However, indicators with global or indirect impacts either increase monotonically with income or have predicted turning points at very high-income levels, unless addressed by multilateral policy. The study also finds that urban concentrations of local pollutants peak at lower income levels than total emissions per capita, while transport-generated local air pollutants peak at higher income levels. These findings provide valuable insights for environmental policy, suggesting targeted strategies for different types of pollution and stages of economic development.
Appearing in Environment and Development Economics, a journal focused on the economic aspects of environmental issues, this paper is highly relevant to the journal's readership. The analysis of the Environmental Kuznets Curve directly addresses a core topic in environmental economics. By examining the link between economic growth and environmental quality, the study provides valuable insights for policymakers and researchers in this field.