Environmental Kuznets Curve

The Environmental Kuznets Curve (EKC) describes the relationship between a country’s economic development and its environmental impact. It suggests that as a country develops economically, environmental degradation initially increases due to industrialization. However, after reaching a certain income level, further growth leads to improved environmental quality, as wealthier societies can invest in cleaner technologies and enforce environmental regulations. Essentially, the EKC depicts an inverted U-shape: pollution rises with early growth but declines as income continues to grow, highlighting the complex balance between economic progress and environmental sustainability.