Environmental Engineering Reference
In-Depth Information
16 industrialized countries, using panel data over the period 1960 to 1998.
Their results showed robust support for weak dematerialization in indus-
trialized countries, whereby the aggregate material intensity, measured
in mass units, reduced as per capita income levels increased. The authors
suggested that this relationship could be due to (1) the higher material use
at lower levels of income to respond to infrastructural needs and (2) the
structural change within the economy towards an increase in the service
sector as income increased.
Dinda (2004) reviewed a number of studies on the EKC hypothesis and
ended up by saying that the subject was open-ended and the existence of
the EKC was inconclusive. He also highlighted several areas that required
further research. First, the choice of economic models was important
to properly rel ect the physical and ecological aspects of the economy.
Second, unfolding the underlying factors behind the EKC was a priority
for any research. Third, moving towards structural rather than reduced-
form models and decomposition analysis might be needed. Fourth, using
of time series rather than panel data was essential to identify the develop-
ment of pollution associated with economic growth in individual coun-
tries. Finally, determining the policy measures and regulations necessary
to allow sustainable development.
Conclusion
This chapter reviewed the extensive research conducted in examining
the relationship between economic growth and the environment. Earlier
studies on the income-environment relationship used the reduced-form
single-equation approach to show the relationship between economic
growth and environmental degradation, without understanding the
dynamics of this relationship. In order to test whether income was the
determinant of the behaviour of the environmental indicator(s), recent
studies moved towards decomposition analysis and more structural and
analytical models to identify the real factors or inl uences behind the
income-environment relationship. Most of the studies used cross-sectional
country or panel data instead of time series data across countries due to
the dii culty and limited availability of the latter. Furthermore, although
some research explored the role of policies and institutions, a limited
number of empirical studies examined the inl uence of international envi-
ronmental legislation on the relationship between economic growth and
the environment.
References
Andreoni, J. and A. Levinson (1998), 'The Simple Analytics of the Environmental Kuznets
Curve',
National Bureau of Economic Research, Inc, NBER Working Paper No. 6739.
