The Effects of Economic Growth on Environmental Quality

Abstract

We explore the relationship between economic growth and environmental quality in South Korea. Economic growth is found to generate environmental pressure. Interpretation of the estimated results in association with historical changes of Korean environmental policies suggests that the problems of SO₂, NO₂. TSP and BOD and domestic waste in South Korea exhibit inverted U-shape relationship with economic growth(i.e., environmental Kuznets curve). The turning point of the curve is located around early 1980s, when the Korean environmental regulation and policies became stricter and effective in practical manner. This evidence suggests that in South Korea environmental protection requires policies and investments to be put into place to reduce environmental degradation.