ECONOMIC-GROWTH AND THE ENVIRONMENT

We examine the reduced-form relationship between per capita income and various environmental indicators. Our study covers four types of indi cators: urban air pollution, the state of the oxygen regime in river b asins, fecal contamination of river basins, and contamination of river basins by heavy metals. We find no evidence that environmental qualit y deteriorates steadily with economic growth. Rather, for most indicat ors, economic growth brings an initial phase of deterioration followed by a subsequent phase of improvement. The turning points for the diff erent pollutants vary, but in most cases they come before a country re aches a per capita income of $8000.