On the existence and shape of an environmental crime Kuznets Curve: A case study of Italian provinces

Abstract

Abstract The shape of the Environmental Kuznets Curve, which relates the trade-offs between environmental goods and production changes to income, has been the focus of much study in the literature. A similar kind of relationship may or may not exist between environmental crime and income, but this has not yet been empirically investigated. Using a unique panel dataset spanning 110 Italian provinces from 2010 to 2015, we empirically investigate the shape of an Environmental Crime Kuznets Curve while controlling for demographic, judicial, and socio-economic heterogeneity. We find evidence of an inverted U-shaped relationship. Moreover, these results are robust to different functional forms and income measures. We discuss the implications of our findings for future policy options.