This paper presents a simple and straight-forward static model of the micro-foundations of the environmental Kuznets curve, in which the relationship between income and pollution depends on the relative magnitudes of ...This paper presents a simple and straight-forward static model of the micro-foundations of the environmental Kuznets curve, in which the relationship between income and pollution depends on the relative magnitudes of the diminishing income-compensated price elasticity of environmental amenity and increasing marginal propensity to earn environmental amenity out of non-environment income. The smaller the income-compensated price elasticity and the larger the marginal propensity to earn out of non-environment income, the earlier the turning point emerges. This key feature of our model generalizes the specific features of many existing models and generates many of their implications.展开更多
基金We thank the two anonymous referees, the editors, and Youping Li for helpful comments and suggestions. This research was supported by the National Natural Science Foundation of China （71273092）, the Humanity and Social Science Foundation of Ministry of Education of China （10YJCZH108）, and the Fundamental Research Funds for Central Universities of China.
文摘This paper presents a simple and straight-forward static model of the micro-foundations of the environmental Kuznets curve, in which the relationship between income and pollution depends on the relative magnitudes of the diminishing income-compensated price elasticity of environmental amenity and increasing marginal propensity to earn environmental amenity out of non-environment income. The smaller the income-compensated price elasticity and the larger the marginal propensity to earn out of non-environment income, the earlier the turning point emerges. This key feature of our model generalizes the specific features of many existing models and generates many of their implications.
