Vol.:(0123456789)
Letters in Spatial and Resource Sciences (2019) 12:41–49
https://doi.org/10.1007/s12076-019-00225-1
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ORIGINAL PAPER
The human rights foundations of an EKC with a minimum
consumption requirement: theory, implications,
and quantitative fndings
Chris Jefords
1
· Alexi Thompson
1
Received: 10 July 2018 / Accepted: 18 January 2019 / Published online: 28 January 2019
© Springer-Verlag GmbH Germany, part of Springer Nature 2019
Abstract
Andreoni and Levinson’s (J Public Econ 80:269–286, 2001) EKC model is modifed
to include Stone (Econ J 63:511–527, 1954) and Geary (Rev Econ Stud 18(99):65–
66, 1950) preferences where the economic agent has a minimum consumption
requirement (MCR). We show that at each level of income, an increase in the MCR
is associated with higher levels of pollution, and the threshold level of income at
which the EKC inverts changes with a change in the MCR. A numerical exercise
further supports these fndings. We ofer a policy discussion within the context of
the environmental impacts of meeting a MCR noting that doing so is costly in terms
of the impact on pollution and the resources required to mitigate pollution in its
presence.
Keywords EKC · Minimum standard of living · Pollution · Economic growth
1 Introduction
Humans require, at a minimum, a certain quantity of goods and services (e.g., food,
clothing, shelter, water, etc.) to function in fully autonomous ways and, perhaps
more importantly, to not die prematurely. Consumption requires both economic and
environmental resources, where economic growth and environmental quality share a
theoretical and empirical relationship in the Environmental Kuznets Curve (EKC).
The basic EKC posits that environmental harm is increasing in economic growth,
where growth is typically measured by gross domestic product (“income”) per cap-
ita. At some threshold standard of living, however, further economic growth is asso-
ciated with reductions in environmental harm. The EKC hence refects an inverted
U-shaped relationship between economic growth and environmental harm.
* Chris Jefords
jefords@iup.edu
1
Department of Economics, Indiana University of Pennsylvania, 213 McElhaney Hall, 441 North
Walk, Indiana, PA 15705, USA