Exogenous technology as an Environmental Kuznets Curve driving force: an impact assessment

Abstract

The Environmental Kuznets Curve literature (EKC) is well represented by a theoretical strand focussing on the main determinants of the pollution/income relationship (PIR) and an empirical strand that investigates the existence of a turning point for a wide set of pollutants. The aim of this paper is to investigate the impact generated by each factor explaining the EKC using the RICE99 model including exogenous technical change in a context of climate change deriving from CO2 emissions over time. The analysis focuses on scenarios developed by considering different hypotheses regarding technological progress (in terms of green and industrial technology) and regulation (viz. the Kyoto Protocol). An assessment of economic, environmental and social impacts is made, by considering a set of indicators. We find that exogenous industrial technology is consumption and welfare improving, but generates the highest levels of emissions confirming the traditional trade off between growth and environment. We identify in the speed of the environmental technological change and in the absence of synergies between industrial and green innovation the main causes explaining this trade off. When you are citing the document, use the following link http://essuir.sumdu.edu.ua/handle/123456789/8890