China's Economic Growth and the Environment Fa 08

Environmental Impact

Kuznets Curve (justin)

Background

The environmental Kuznets curve (shown above) represents that concept that environmental degradation will decline once a country's per capita income reaches a certain level. The curve represents the hypothesized pattern that developing countries will follow as they grow. There is much controversy surrounding the validity and practicality of the environmental Kuznets curve.

In the beginning stages of a country's growth, industrialization occurs. During this, the curve shows that environmental damage grows rapidly. At this point people focus more on income, jobs, and improving the standard of living with pollution taking a back seat (Dasgupta 2002). The country is too poor to be able to fund pollution abatement and environmental regulation is nearly nonexistent. As per capita income rises, however, it reaches a turning point at which people are now able to address the concerns of the environment. Subsequently, new technologies are implemented and legislation is passed which results in environmental degradation falling. Initial estimates of the per capita level of income that represents the turning point range from $5000 to $8000 (Dasgupta 2002). China's per capita level of income in 1998 was $3051, well below the level where improvements in the environment should start to be seen (Dasgupta 2002). This figure indicates that the next few decades should see continuing environmental damage in China.

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References

• Dasgupta, S., et. al. "Confronting the Environmental Kuznets Curve." The Journal of Economic Perspectives, Vol. 16, No. 1 (2002), pp. 147-168.
• Jahiel, A. "The Organization of Environmental Protection in China." The China Quarterly, No. 156 (Dec. 1998), pp. 757-787.
• Muldavin, J. "The Paradoxes of Environmental Policy and Resource Management in Reform-Era China." Economic Geography, Vol. 76, No. 3 (July 2000), pp. 244-271.