In recent years, extensive literature on the Environmental Kuznets Curve lead- ing to optimistic policy conclusions has attracted great attention. However, the underlying cross-section estimations are not very reliable. Accordingly, this contribution uses time series data for a single country...

Production often causes pollution as a by-product. Once environmental degra- dation becomes too severe, regulation is introduced by which society forces the economy to make a transition to cleaner production processes. We model this transition as a change in "general purpose technology" and...