Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/171486
Authors: 
Smulders, Sjak
Bretschger, Lucas
Egli, Hannes
Year of Publication: 
2005
Series/Report no.: 
Economics Working Paper Series 05/42
Abstract: 
Production often causes pollution as a by-product. Once environmental degra- dation becomes too severe, regulation is introduced by which society forces the economy to make a transition to cleaner production processes. We model this transition as a change in "general purpose technology" and investigate how it interferes with economic growth driven by quality-improvements. The model gives an explanation for the inverted U-shaped pollution-income relation found in empirical research for many pollutants (Environmental Kuznets Curve). We provide an analytical foundation for the claim that the rise and decline of pol- lution can be explained by policy-induced technology shifts and intrasectoral changes.
Subjects: 
Environmental Kuznets curve
general purpose technology
growth
intrasectoral shifts
JEL: 
O41
Q20
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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