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Economic Development
and
Environmental Quality
Environmental Problems in
Developing Countries

Environmental problems in
developing countries are different
from those in developed countries:
• Sanitation problems
• Diseases (such as malaria)
• Indoor air pollution problems
Environmental Problems in
Developing Countries

The “environmental Kuznets curve”:
there’s often an inverted U-shaped
relationship between pollution and
economic development.
The Environmental Kuznets Curve


Certain types of air and water
pollution tend to increase with
development until per capita income
reaches a level of about $5000 to
$8000.
Beyond this level, pollution starts to
decline.
The Environmental Kuznets Curve


This suggests that pollution levels
might grow sharply in the future,
since many countries are on the
rising part of the curve.
Per capita GDP in 1998:
• $1440
• $2060
• $2407
• $3051
in
in
in
in
sub-Saharan Africa
India
Indonesia
China

“God forbid that India should ever
take to industrialism after the
manner of the West…. It took Britain
half the resources of the planet to
achieve this prosperity. How many
planets will a country like India
require?”
Mahatma Gandhi
The Environmental Kuznets Curve

Why does the curve rise at low levels of
development? Possible explanations:
• People in poorer countries are more interested in jobs
than environmental quality.
• Poorer countries cannot easily afford pollution
abatement costs.
• Environmental regulation is weak in developing
countries.

Why does pollution tend to fall at higher levels of
development? Possible explanations:
• Industrial sectors become cleaner.
• People value environmental quality more.
• Regulatory institutions become more effective.