If the “Environmental Kuznets’ Curve” discussed in class is true, then which of the following statements must be false?

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BlackTom AI · Accepted Answer

To approach this question, begin by recalling what the Environmental Kuznets Curve (EKC) posits about the relationship between environmental degradation and a country’s income.
Option 1: 'Rich countries, which typically encompass more concentrated and urbanized populations, are the most polluting.' Under the EKC, pollution tends to rise during early development, peak at mid‑income levels, and then decline as income continues to grow and cleaner technologies, institutions, and environmental regulations emerge. Therefore, the statement that rich countries are the most polluting must be false when the EKC holds. It is usually mid‑income countries that exhibit the highest pollution levels, not the wealthiest ones.
Option 2: 'Once a country has passed the point when its economy is based primarily on manufacturing, further economic growth is associated with a cleaner environment.' This aligns with the EKC’s downward slope after the turning point, where higher income and structural changes toward services and cleaner technologies lead to environmental improvements. So this statement is consistent with the EKC and would be considered true under it, not false.
Option 3: 'Poor countries, with dispersed rural agricultural populations, are typically the least polluting.' The EKC implies that pollution is generally lower at low income levels, but there are important caveats: some poor countries can have high emissions from inefficient practices or biomass use, and “typically the least polluting” over all dimensions isn’t guaranteed. This statement is not a definitive implication of the EKC, and depending on context could be contested, but it is generally not the core claim of EKC. It is not as clearly false as Option 1.
Option 4: 'Countries go through different stages – from an economy based on natural resources, to one based on manufacturing, to one based on services, technology, and knowledge generation.' This description matches the classic narrative often associated with EKC or general development trajectories, and is a plausible depiction within the EKC framework. It would be considered true under the EKC, not false.
Option 5: 'Rich countries are those that are characterized by the greatest demands for a clean environment – clean air, clean water, national parks, etc.' This statement conflates demand with actuality and is not an inherent or universal implication of the EKC. Wealthier societies may have strong environmental preferences, but the EKC does not logically require that rich countries always have the greatest environmental demands in practice, nor does it define rich countries by such demands. While it may reflect a political sentiment in some contexts, it is not a core EKC claim and could be false in certain cases.
In summary, evaluating each option through the lens of the EKC, Option 1 stands out as the one that must be false: the EKC implies pollution rises and then falls with income, so the characterization that the richest countries are the most polluting is incompatible with the curve’s downward phase for high income levels. The other options either align with common EKC interpretations or are not definitive falsifications of the curve

AEM2300/ECON2300 DEMO Prelim 2: Exam not Graded

If the “Environmental Kuznets’ Curve” discussed in class is true, then which of the following statements must be false?

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