page_title: Kuznets curve
section_title: Environmental Kuznets curve
hierarchical_section_title: Kuznets curve / Environmental Kuznets curve
caption_attribution_description: English: The modified Kuznets curve, which represents the application of the Kuznets curve in Environmental Studies.
context_page_description: In economics, a Kuznets curve graphs the hypothesis that as an economy develops, market forces first increase and then decrease economic inequality. The hypothesis was first advanced by economist Simon Kuznets in the 1950s and 1960s.
  One explanation of such a progression suggests that early in development, investment opportunities for those who have money multiply, while an influx of cheap rural labor to the cities holds down wages. Whereas in mature economies, human capital accrual takes the place of physical capital accrual as the main source of growth; and inequality slows growth by lowering education levels because poorer, disadvantaged people lack finance for their education in imperfect credit-markets.
  The Kuznets curve implies that as a nation undergoes industrialization – and especially the mechanization of agriculture – the center of the nation’s economy will shift to the cities. As internal migration by farmers looking for better-paying jobs in urban hubs causes a significant rural-urban inequality gap, rural populations decrease as urban populations increase.
context_section_description: The environmental Kuznets curve (EKC) is a hypothesized relationship between environmental quality and economic development: various indicators of environmental degradation tend to get worse as modern economic growth occurs until average income reaches a certain point over the course of development. The EKC suggests, in sum, that "the solution to pollution is economic growth." 
  Although subject to continuing debate, there is considerable evidence to support the application of environmental Kuznets curve for various environmental health indicators, such as water, air pollution and ecological footprint which show the inverted U-shaped curve as per capita income and/or GDP rise. It has been argued that this trend occurs in the level of many of the environmental pollutants, such as sulfur dioxide, nitrogen oxide, lead, DDT, chlorofluorocarbons, sewage, and other chemicals previously released directly into the air or water. For example, between 1970 and 2006, the United States' inflation-adjusted GDP grew by 195%, the number of cars and trucks in the country more than doubled, and the total number of miles driven increased by 178%. However, during that same period certain regulatory changes and technological innovations led to decreases in annual emissions of carbon monoxide from 197 million tons to 89 million, nitrogen oxides emissions from 27 million tons to 19 million, sulfur dioxide emissions from 31 million tons to 15 million, particulate emissions by 80%, and lead emissions by more than 98%.
  Deforestation may follow a Kuznets curve (cf. forest transition curve). Among countries with a per capita GDP of at least $4,600, net deforestation has ceased to exist. Yet it has been argued that wealthier countries are able to maintain forests along with high consumption by ‘exporting’ deforestation.
caption: Hypothetical environmental Kuznets curve: a translation of the Kuznets curve to the use of natural resources.
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