Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/48905
Authors: 
Bretschger, Lucas
Smulders, Sjak
Year of Publication: 
2000
Series/Report no.: 
Wirtschaftswissenschaftliche Diskussionspapiere // Ernst-Moritz-Arndt-Universität Greifswald, Rechts- und Staatswissenschaftliche Fakultät 12/2000
Abstract: 
Production often causes pollution as a by-product. Once pollution problems become too severe, regulation is introduced by political authorities which forces the economy to make a transition to cleaner production processes. We model this transition as a change in general purpose technology (GPT) and investigate how it interferes with economic growth driven by qualityimprovements. The model gives an explanation for the inverted U-shaped relationship found in empirical research for many pollutants, often referred to as the Environmental Kuznets Curve (EKC). We provide an analytical foundation for the claim that the rise and decline of pollution can be explained by policyinduced technology shifts.
Subjects: 
Environmental Kuznets curve
general purpose technology
growth
JEL: 
O41
Q20
Document Type: 
Working Paper

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