The need for a multi-dimensional extension of the environmental kuznets curve
Clemente Hernandez-Rodriguez • Jose Antonio Olivares-Mendoza
Research Summary
The Environmental Kuznets Curve (EKC) hypothesis —the “grow first, clean up later” trajectory— has long dominated environmental economics. However, as highlighted in recent critical literature, the model suffers from a profound temporal mismatch. It operates within the constraints of market time (short-term fiscal and investment cycles), while ignoring the biological time required for ecosystem assimilation and regeneration. Through a thoughtful and well-structured literature review, this paper provides an answer to whether the EKC is a valid instrument to link environment and economic growth. The discussion offers useful insights into environmental economics and sustainable policy research. Before the projected cleaning-up phase of the EKC is ever achieved, there are risks of reaching tipping points where environmental degradation becomes irreversible. This study critically examines the theoretical foundations, key determinants, and major criticisms of the EKC while proposing a broader multidimensional perspective for understanding the relationship between economic growth and environmental degradation.
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