AP MacroeconomicsEnvironmental Economics
Environmental Kuznets Curve
The environmental Kuznets curve hypothesizes an inverted-U relationship in which pollution rises with income at low levels of development, then falls once income passes a threshold.
Early industrialization prioritizes jobs and output over the environment, with weak regulation, so pollution climbs as income per capita grows. Past a turning point, cleaner technology, structural shift toward services, and stronger demand for environmental quality (and regulation) cause pollution to decline. Named for its resemblance to Simon Kuznets's income-inequality curve, the EKC holds better for some pollutants (local air quality) than for others (CO2), and is empirically contested.