The Simple Static Model Of The Environmental Kuznets Curve

Today, rapid development in the global economy, the continuous advancement of material standard of living makes it increasingly more and more concerned about the deteriorating environment. Why, in some cities in newly industrialized countries (such as Bangkok, Shanghai and Mexico City, etc.), now the air pollution is more serious than that in 20-30 years ago; the contrary, in New York, London and Tokyo and other cities in developed countries, and now its more than 20-30 years ago, the air cleaner? Why is the world's poorest countries and the richest countries have relatively clean environment, and middle-income countries, the most serious environmental pollution? 90 20th century, the emergence of environmental Kuznets hypothesis for this series of questions will undoubtedly provide answers for reference. There is evidence that in some countries the relationship between pollution and national income inverted U-type, that pollution first increases with income, and later as national income increases. This relationship is what economists call "environmental Kuznets curve."In this paper, a simple static model, demonstrates the result of environmental Kuznets curves is largely due to emission reduction. This model includes consumption, investment and environmental investment, respectively, than in the single economy and the economy were demonstrated. The model found that the conclusions of a single person in the economy than the economy is not Pareto optimal, there is room for improvement. This also shows that in the treatment of environmental issues, can not take a laissez faire attitude, planning regulation to be more effective than market regulation.