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Journal Article

Economic Growth and the Environment

Gene M. Grossman and Alan B. Krueger
The Quarterly Journal of Economics
Vol. 110, No. 2 (May, 1995), pp. 353-377
Published by: Oxford University Press
Stable URL: http://www.jstor.org/stable/2118443
Page Count: 25
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Economic Growth and the Environment
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Abstract

We examine the reduced-form relationship between per capita income and various environmental indicators. Our study covers four types of indicators: urban air pollution, the state of the oxygen regime in river basins, fecal contamination of river basins, and contamination of river basins by heavy metals. We find no evidence that environmental quality deteriorates steadily with economic growth. Rather, for most indicators, economic growth brings an initial phase of deterioration followed by a subsequent phase of improvement. The turning points for the different pollutants vary, but in most cases they come before a country reaches a per capita income of $8000.

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