The relationship between economic development and environmental qualit
y is analyzed econometrically for a large sample of countries over tim
e. The results indicate that some indicators improve with rising incom
es (like water and sanitation), others worsen and then improve (partic
ulates and sulfur oxides), and others worsen steadily (dissolved oxyge
n in rivers, municipal solid wastes and carbon emissions). Growth tend
s to be associated with environmental improvements where there are gen
eralized local costs and substantial benefits. But where the costs of
environmental degradation are borne by others (by the poor or by other
countries), there are few incentives to alter damaging behavior.