Economics Research

Abstract Economists and environmentalists have come to the conclusion that the initial stages of economic development and growth result in worsening of environmental quality while in the later stages, the environmental quality improves. The relationship between income change and environmental quality has been referred to as the environmental Kuznets curve. In this paper, we have studied the environmental Kuznets curve for two types of pollution (air and water) using Mixed Model for the period 1988-2007 for developing countries. In addition to the variables of interest we include several explanatory variables. The results support the environmental Kuznets curve hypothesis for both types of pollution .For air pollution, the countries with per capita incomes over 2235 dollars (fixed price of 2005) have passed the return pint of the curve and for water pollution the countries with per capita incomes over 3623 dollars (fixed price of 2005) have placed in the descending part of the environmental Kuznets curve.