Theoretical Analysis of Environmental Kuznets Curve (EKC)
Subject Areas : Labor and Demographic Economics
Keywords: Environment, Dynamic Model, Economic Growth, Static Model,
Abstract :
In this paper, we have tried to examine how EKC inverted U-shaped curve of economic growth and the environmental quality is created, based on the microeconomic theories and optimal dynamic situations. First, different ways of shaping EKC inverted U-shaped curve, based on both static and dynamic models have been described, considering the said hypotheses and conditions. Findings show that people's preferences change during the process of economic growth is the main factor in creation of Kuznets curve.
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