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 dioxi de. The results indicate that there is a U-shaped relation between inc ome and atmospheric concentration of SO2 and an inverted U-shaped rela tion between the spatial intensity of economic activity and SO2 concen trations. These results suggest that the spatial intensity of economic activity, rather than income, provides the impetus for policies and t echnologies that reduce SO2 emissions. Based on this result, the atmos pheric concentration of SO2 in developing nations may decline faster t han indicated by previous analyses. The potential for this decline dep ends on the rate at which income grows relative to population. The tra de-off between the effects of income gains and the spatial intensity o f economic activity on the atmospheric concentration of SO2 is consist ent with the notion that some environmental problems can be ameliorate d by slowing population growth and increasing income levels. (C) 1998 Elsevier Science B.V. All rights reserved.