Will economic growth inevitably degrade the environment, throughout development? We present a household-level framework emphasising the trade-off between consumption that causes pollution and pollution-reducing abatement. Our model provides a simple explanation for upward-turning, non-monotonic...

Will economic growth inevitably degrade the environment, throughout development? We present a household-level framework emphasising the trade-off between consumption that causes pollution and pollution-reducing abatement. Our model provides a simple explanation for upward-turning, non-monotonic...

Rich-poor interactions complicate the search for a stable Environmental Kuznets Curve (an "inverted U" relationship between income per-capita and environmental degradation). We show that aid from richer to poorer countries to support investments in environment, in either of two forms, alters the...