Demand for and supply of environmental quality in the environmental Kuznets curve hypothesis

Abstract

Demand for and supply of environmental quality, which constitute the underlying forces that lead to turning points of Environmental Kuznets Curves (EKCs), are only implicitly referred to in the fast growing literature. Unlike conventional approaches to EKCs, which look at indices of single pollutants per capita as per capita incomes rise, this paper estimates the impact of GDP per capita on all actions per capita seeking environmental quality in Greece, Spain and Portugal during the period 1974–1994. The findings indicate that rising GDP per capita leads to higher environmental actions per capita, implying either that we are on the rising segment of an EKC or that EKCs do not exist.