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Business & Economics

The Policies Impact on the Slope of Kuznets Environmental Curve
Dalia Štreimikienė

ABSTRACT. This paper analyses the role of EU pollution reduction strategies in reducing SO₂ and NOx emissions in EU. The Concept of Kuznets environmental curves is analysed and further developed based on few stages Kuznets curves idea. The environmental policies impact on the slope of Kuznets environmental curve is discussed. The use of economic mechanisms for SO2, Nox and other pollutants emission reduction is analysed based on experience of EU member states. The aim of the paper is to develop the concept of few stages Kuznets curves, based on analysis of results of empirical Kuznets environmental curves studies and development of EU emission reduction policies driving Kuznets environmental curves downwards. The main tasks of the paper are:

• To present theoretical background of environmental Kuznets curves and
• To develop concept of few stages of Kuznets curves representing specific stages of sustainable development;
• To discuss results and findings of empirical studies on Kuznets environmental curves;
• To review EU emission reduction policies, their targets and instruments;
• To define the role of EU emission reduction policies on shifting environmental Kuznets curves of EU member states
• To present Lithuanian case study of environmental Kuznets curve of several stages

The path of sustainable development is considered to be achieved than economic growth decouples from use of natural resources and pollution decouples from use of natural resources. Therefore it is possible to draw few Kuznets curves representing several stage of sustainable development instead of one curve trying to represent the path of sustainable development. The relationship between GDP per capita and primary or final energy consumption can be considered as the first level environmental Kuznets curve, and the second stage curve represents the relationship between primary or final energy consumption per capita and pollution. The third one curve can represent the relationship between income inequality and GDP per capita.

KEYWORDS: sustainable development, pollution reduction policies, Kuznets curves.

JEL classification: Q01.