The determinants of atmospheric SO2 concentrations:: reconsidering the environmental Kuznets curve

This analysis explores the effects of income and the spatial intensity of economic activity on the atmospheric concentration of sulfur dioxide. The results indicate that there is a U-shaped relation between income and atmospheric concentration of SO2 and an inverted U-shaped relation between the spatial intensity of economic activity and SO2 concentrations. These results suggest that the spatial intensity of economic activity, rather than income, provides the impetus for policies and technologies that reduce SO2 emissions. Based on this result, the atmospheric concentration of SO2 in developing nations may decline faster than indicated by previous analyses. The potential for this decline depends on the rate at which income grows relative to population. The trade-off between the effects of income gains and the spatial intensity of economic activity on the atmospheric concentration of SO2 is consistent with the notion that some environmental problems can be ameliorated by slowing population growth and increasing income levels. (C) 1998 Elsevier Science B.V. All rights reserved.