Levinson, Arik; O'Brien, James - National Bureau of Economic Research (NBER) - 2015
Environmental Engel curves (EECs) plot the relationship between households’ incomes and the pollution embodied in the … are indirectly responsible for more pollution. Second, EECs are convex, with income elasticities of less than one. Third … pollution. We show that even without changes to production techniques, the pollution necessary to produce the goods and services …