The Environmental Kuznets Curve

The Environmental Kuznets Curve illustrates the relationship between economic development and environmental quality. It suggests that as a country’s economy grows, environmental degradation initially increases due to industrialization. However, beyond a certain income level, further economic growth tends to lead to improvements in environmental conditions, driven by increased public awareness, better technology, and stronger environmental regulations. In essence, the curve resembles an inverted U-shape, indicating that economic growth can eventually help reduce environmental harm after reaching a turning point.