Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5052162 | Ecological Economics | 2006 | 11 Pages |
Abstract
The environmental Kuznets curve hypothesis (EKC) predicts an inverse U-shaped relationship between environmental pollution and per capita income. The literature with respect to the EKC is vast but far from conclusive. This paper adds firm size to the standard EKC reduced form regression and analyses whether firm size matters once income and composition are controlled for. Results suggest that large firm countries are initially associated with higher levels of environmental damage. However, as economies develop, large firm countries find it easier to adopt more stringent environmental legislation. Once environmental damage starts to decrease, the decrease is much larger in large firm countries.
Related Topics
Life Sciences
Agricultural and Biological Sciences
Ecology, Evolution, Behavior and Systematics
Authors
Bruno Merlevede, Tom Verbeke, Marc De Clercq,