Validity of the Environmental Kuznets Curve Hypotheses in Water Pollution A Case Study

Document Type : Research Paper

Authors

1 Ph.D. Student of Petroleum Economics, Allameh Tabataba'i University, Tehran

2 Assist. Prof. member of Economic Systems, Department of Economics, Islamic Azad University, Shahriyar, Tehran

3 Senior Researcher, Institute for International Energy Studies (IIES), Tehran Branch, Shahriyar, Tehran

Abstract

Among the different environmental pollutions, water pollution is of especial importance due to the rather unchanging supply of this vital resource on a global scale and because of the dire consequences of its pollution for human health. The relationship between water production and its pollution can thus established and used as a measure of environmental degradation. This relationship can then be captured and analyzed in terms of environmental Kuznets hypotheses. It may be claimed that the early stages of economic growth is associated with lower per capita income and water pollution but the trend is reversed with increasing per capita income and improved economic growth. The present study was conducted using the panel data technique and the Kuznets environmental hypotheses were examined for the two groups of developed and developing countries under the two scenarios of using either per capita GDP or the share of industry to the added value in GDP as an indicator of economic growth. Results indicate that under both scenarios, Kuznets hypotheses are confirmed when studying the situation in developing countries but refuted in the case of developed countries.

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