The evidence on the environmental Kuznets curve indicates that national environmental policies differ between high-income and low-income countries, and that as a result of income growth pollution in the Northern hemisphere may be reduced over time at the cost of increasing pollution in the Southern hemisphere. There have been concerns that this process is reinforced by international trade of goods and by foreign direct investment between North and South. More stringent environmental policies in the North force pollution-intensive industries located in the North to raise their prices relative to the prices charged by firms in the South. (more…)
|
|
|
|
|
