Title
Effect of income distribution on the environmental Kuznets curve
Document Type
Journal article
Source Publication
Pacific Economic Review
Publication Date
8-1-2011
Volume
16
Issue
3
First Page
349
Last Page
370
Publisher
Wiley-Blackwell Publishing Asia
Abstract
This paper augments the model of Andreoni and Levinson by analyzing the effect of income distribution on the inverted U-shaped relationship between some forms of pollution and income, the so-called ‘environmental Kuznets curve’. In a context in which pollution abatement technology shows increasing returns to scale and an inverse U-shaped pollution–income path is present, this study demonstrates the existence of a majority voting equilibrium, and concludes that the inverted U-shaped relationship is between median income and environmental degradation rather than between per capita income and environmental degradation. Our results suggest that an increase in equality in income distribution improves environmental quality and social efficiency. The implication of the model for the empirical estimation of environmental Kuznets curves is examined using a panel data set of 36 countries over a 20-year period. Estimation results using different models show that income distribution might be an important factor in the empirical estimation of these curves.
DOI
10.1111/j.1468-0106.2011.00552.x
Print ISSN
1361374X
E-ISSN
14680106
Publisher Statement
Copyright © 2011 The Authors. Pacific Economic Review© 2011 Blackwell Publishing Asia Pty Ltd
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Qu, B., & Zhang, Y. (2011). Effect of income distribution on the environmental Kuznets curve. Pacific Economic Review, 16(3), 349-370. doi: 10.1111/j.1468-0106.2011.00552.x
