Economic development and environment pollution in high and middle-income countries: A comparative analysis of environmental Kuznets curve

Abstract

The aim of this study is to make a comparative analysis of the relationship between development and environment pollution and to test the validity of environmental Kuznets curve in high and middle-income countries by using the data from the period 1980-2007. According to the estimation conducted by the panel method, a negative and significant relationship was found between the improvement in development indicators and environment pollution in the middle-income countries which indicates that an increase in income is compatible with environmental Kuznets curve. In other words, the results indicate an inverted U-shaped curve in middle-income countries. However, in high-income countries, an inverted N-shaped relationship was found between development indicators and environment pollution.