EKC
The Environmental Kuznets Curve (EKC) is a proposed relationship between environmental degradation and economic development. It suggests that as an economy grows from low income to middle income, environmental damage tends to increase, but after reaching a certain income level the trend reverses and degradation declines as wealth and institutions improve, technology advances, and environmental policies strengthen. The classic graphical representation is an inverted U-shaped curve.
The concept originated in the empirical literature of the 1990s, notably in work by Grossman and Krueger,
Three mechanisms are commonly cited to explain the EKC. The scale effect posits that higher overall activity
Empirical evidence is mixed. Some pollutants, such as certain air and water indicators, show partial or weak
Policy implications emphasize pursuing growth with strong environmental institutions, appropriate regulation, and technology transfer rather than