Beyond additive preferences: Economic behavior and the income pollution path. Figueroa, E. & Pastén, R. Resource and Energy Economics, 2015.
doi  abstract   bibtex   
© 2015 Elsevier B.V. Theoretical models of the environmental Kuznets curve (EKC) almost universally assume additive preferences; we demonstrate that under non-additive preferences the sufficient condition to sign the economy's income-pollution path depends on the elasticity of substitution between consumption and environment (and not on the elasticity of marginal utility of consumption). The proposed model provides behavioral content that has been missed in the existing literature. In the model, and also departing from the previous literature, preferences change and evolve (through variable elasticity of substitution) according to the relative scarcity of the environment.
@article{
 title = {Beyond additive preferences: Economic behavior and the income pollution path},
 type = {article},
 year = {2015},
 keywords = {Environment Kuznets curve,Non-additive preferences,Relative correlation aversion,Relative scarcity of the environment},
 volume = {41},
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 created = {2020-09-04T01:53:42.608Z},
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 abstract = {© 2015 Elsevier B.V. Theoretical models of the environmental Kuznets curve (EKC) almost universally assume additive preferences; we demonstrate that under non-additive preferences the sufficient condition to sign the economy's income-pollution path depends on the elasticity of substitution between consumption and environment (and not on the elasticity of marginal utility of consumption). The proposed model provides behavioral content that has been missed in the existing literature. In the model, and also departing from the previous literature, preferences change and evolve (through variable elasticity of substitution) according to the relative scarcity of the environment.},
 bibtype = {article},
 author = {Figueroa, E. and Pastén, R.},
 doi = {10.1016/j.reseneeco.2015.04.004},
 journal = {Resource and Energy Economics}
}

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