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Often, however, the real issues at stake are more complex – particularly if incomes and welfare depend on the environment. One theory in support of this argument is that as incomes increase, environmental degradation initially rises. Once incomes reach a critical point, however, the trend is reversed, and as incomes rise the degradation begins to fall...
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Once incomes reach a critical point, however, the trend is reversed, and as incomes rise the degradation begins to fall. Empirical evidence on this theory is very mixed, holding for some pollutants, but not others, and ignoring the problems of permanent degradation. There is no reason to assume we have enough time to reach that point where degradation begins to fall before the damage becomes irretrievably destructive...
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