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In: Economics

What is an Environmental Kuznets Curve? Assuming that it holds for a specific pollutant in a...

What is an Environmental Kuznets Curve? Assuming that it holds for a specific pollutant in a given country, what are the implications for the evolution of the I, P, A, and T factors in the IPAT identity?

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Expert Solution

Answer - The environmental kuznets curve expresses the relationship between economic growth and environmental changes in a country. It states that initially when economy grows rich results in environmental degradation, but after reaching a certain level of economic development, the quality of environment starts to improve. So as per this hypothesis poor countries least care for the environment, they are not able to allocate resources to protect environment .

Implications ​​​​- The IPAT Identity

   I=P×A×T

The above identity explains the relationship between human pollution and its effect on the environment. The Identity shows the impact on ecosystem (I) are the product of population size (P), affluence (A) and technology (T). The IPAT identity was developed by Paul ehrlich and John holdren in1971. The IPAT identity shows that with evolution (gradual development) ecosystem damages with increase in population, affluence and technology. GDP is only a measure of gross economic production and not a measure of national well being. High GDP may also cause environmental degradation or it may mean more sustainable consumption, energy saving and recycling technology.

​​​​​​So initially poor countries have least ecofriendly technology, it harms environment but when a country is developed it has more ecofriendly technology of production.


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