Please use this identifier to cite or link to this item: http://hdl.handle.net/1893/712
Appears in Collections:Economics Working Papers
Peer Review Status: Unrefereed
Title: Do productivity improvements move us along the environmental Kuznets Curve?
Authors: Turner, Karen
Hanley, Nicholas
De, Fence Janine
Contact Email: karen.turner@strath.ac.uk
Citation: Turner K, Hanley N & De Fence J (2009) Do productivity improvements move us along the environmental Kuznets Curve?. Stirling Economics Discussion Paper, 2009-02. University of Stirling Management School.
Keywords: Computable general equilibrium models
Technical progress
Energy efficiency
Labour productivity
Environmental kuznets curve
JEL Code(s): D57
D58
R15
Q41
Q43
Issue Date: Jan-2009
Publisher: University of Stirling Management School
Series/Report no.: Stirling Economics Discussion Paper, 2009-02
Abstract: The Environmental Kuznets Curve (EKC) hypothesis focuses on the argument that rising prosperity will eventually be accompanied by falling pollution levels as a result of one or more of three factors: (1) structural change in the economy; (2) demand for environmental quality increasing at a more-than-proportional rate; (3) technological progress. Here, we focus on the third of these. In particular, energy efficiency is commonly regarded as a key element of climate policy in terms of achieving reductions in economy-wide CO2 emissions over time. However, a growing literature suggests that improvements in energy efficiency will lead to rebound (or backfire) effects that partially (or wholly) offset energy savings from efficiency improvements. In this paper we consider whether increasing labour productivity will have a more beneficial, or more predictable, impact on CO2/GDP ratios than improvements in energy efficiency. We do this by using CGE models of the Scottish regional and UK national economies to analyse the impacts of a simple 5% exogenous (and costless) increase in energy or labour augmenting technological progress.
Type: Working or Discussion Paper
URI: http://hdl.handle.net/1893/712
URL: http://econpapers.repec.org/paper/stlstledp/2009-02.htm
Affiliation: Economics
Economics
University of Strathclyde

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