Environmental harm declines with rising income per person when:

Question

Quizplus · Accepted Answer

This is known as the Environmental Kuznets Curve (EKC) hypothesis, which suggests that at low income levels, environmental degradation increases with income growth, but eventually reaches a turning point where further income growth leads to a decrease in environmental degradation. This is because higher income levels lead to a greater demand for environmental quality, and economies become more efficient as they develop, leading to cleaner production methods. A and C are not true, and D is a false statement as the adverse effect of GDP growth may not necessarily dominate the modest increase in demand for environmental quality, as seen in the EKC hypothesis.

Environmental Harm Declines with Rising Income Per Person When