The Environmental Kuznets Curve with Environmental Spillovers

In this paper, we extend Hartman, Kwon(2005) endogenous growth model in a straightforward way to include endogenous technical change. The planner chooses the fraction of physical capital to control pollution generated by production output process, human capital and technical capital are produced cleanly. Under plausible assumptions, there exists the environmental Kuznets curve for realistic parameter values. The inter-temporal elasticity of substitution plays a very important role to decide the environmental Kuznets curve.