Is there a link between a nation's wealth and its air quality? This research delves into the environmental Kuznets curve (EKC) hypothesis, examining the relationship between air pollution emissions and income levels, using data from the 50 US states. The study analyzes seven types of air emissions, revealing a consistent decrease in pollution with increasing per capita income across all states. Researchers also found significant heteroscedasticity, with lower-income states exhibiting greater variability in per capita emission levels. The research explores the changes in air toxics emissions between 1988 and 1994, suggesting an association between income growth and decreased per capita emissions. However, the magnitude of income change didn't correlate with the emission reduction. Instead, the reduction in per capita emissions increased with both the 1988 emission level and income. These findings underscore the complex dynamics between economic development and environmental quality. Ultimately, this paper offers significant implications for understanding the development process and its environmental consequences. The results provide valuable insights for policymakers, informing strategies to promote economic growth while minimizing air pollution and enhancing environmental sustainability. The study contributes to the ongoing debate about the EKC and offers evidence for the development of effective environmental policies.
Published in Environment and Development Economics, this research is highly relevant to the journal's focus on the interplay between economic progress and environmental sustainability. It contributes to the understanding of the environmental Kuznets curve, a central concept in environmental economics. The study, using US data, provides empirical evidence on how economic growth relates to air pollution, reinforcing the journal's interdisciplinary approach.