If you are interested in knowing what the top ten most polluted places are according to the Blacksmith Institute, click here. These places are located in Ukraine (1), Russia (3), Dominican Republic (1), Zambia (1), Peru (1), China (1), Kyrgyzstan (1), and India (1). Some of these places, such as Chernobyl, have been polluted for decades. None of these countries are in the OECD.
To some extent, this reflects the idea of an environmental Kuznet curve. Poor countries are polluted because a clean environment is a superior good that people desire once they have enough food on the table and they can produce a surplus fund. So as poor countries become richer, pollution increases until it reverses. Although the idea that there is an immutable relationship between income and the environment is most likely specious, for there isn’t any such thing in economics. It is however, possible that historically many countries have seen such a relationship at work. See the Wikipedia entry on the subject.
It amazes me that politicians in the United States and Europe demand its citizens to use less energy, because that would 'help' the environment. It would seem to me, that if you really want to 'help' the environment, it is best to reduce pollution in those places where it is most prevalent, like China, India and Russia. Now wouldn't the consequence of reduced energy demand in the Western World, put downward pressure on global energy prices? But what happens when energy prices fall in the those countries which have a lot of pollution? To me, it would seem that industrialists are less incited then to implement energy-efficient manufacturing processes.
What politicians thus actually should be saying is that we should use more energy, because that will put upward pressure on global energy prices. With rising energy prices, those industrialists in the polluted countries -will- have an incentive to implement energy-efficient processes.
You do not need Kyoto to create a better environment, you only have to turn on your air conditioner. :)
Posted by: Kurt | October 28, 2006 at 08:39 PM
It seems to me that Kuznet implies that there is a net benefit to the pollution because of the growth the country experiences. In these examples i see little reward for the mass pollution, as well as in the 35 most polluted places. I would rather look as a possible causation being the low level protection for property rights in these countries.
Posted by: Carl Marks | October 29, 2006 at 04:40 PM
There is a mining town in the west of Tasmania where sulphurous fumes from copper processing created a lunar landscape for some miles around the works.
http://www.theage.com.au/news/tasmania/queenstown/2005/02/17/1108500205909.html
It is a remarkable sight but it is a curiosity rather than an ecological disaster because it is surrounded by a vast expanse of forest and terrain that is too rugged and remote to be used for commercial purposes, apart from mining.
Posted by: Rafe Champion | October 31, 2006 at 06:22 AM
Hey there :)
Just wanted to let you know that I think this blog is GREAT, and that you're a fantastic writer/blogger/economist??
You've really got me back into Economics, and enjoying it again, after having it KILLED (over and over again!) by my Economics teacher this year!!
You're great! Love the blog, can't wait for more entrys :)
Tiffany
Posted by: Tiffany | November 01, 2006 at 03:53 AM