Environmental Kruznets Curve

The Environmental Kuznets Curve (EKC) is an economic concept that asserts that as a country's income increases, its environmental quality initially deteriorates but eventually begins to improve. The premise is that as countries develop and become more affluent, they can afford to invest in protection of the environment, while growth in industries that cause environmental damage is limited due to their declining competitiveness. The EKC can be used to describe the relationship between income and environmental quality for different environmental indicators, such as air and water pollution.