Environmental Kuznets Curve Hypothesis Research Articles

The relationship between energy technology, energy efficiency, renewable energy, and the environment in Türkiye

This study aims to investigate the effects of technological advancements, energy efficiency, and renewable energy utilization in Türkiye's fossil fuel sector on CO2 emissions and to test the applicability of the Environmental Kuznets Curve (EKC) hypothesis. The EKC hypothesis has been confirmed for Türkiye, revealing an inverse U-shaped relationship between CO2 absorption and per capita income. Furthermore, all variables display negative coefficients and show statistical significance in the long term. Thus, it has been established that technological progress, energy efficiency, and the adoption of renewable energy have a positive impact on reducing CO2 emissions. Given Türkiye's status as an energy importer heavily dependent on fossil fuels, prioritizing technological advancements in the energy sector is crucial since complete abandonment of fossil fuels in the near future is unlikely. Moreover, efficient energy utilization plays a vital role in reducing energy imports, a substantial contributor to Türkiye's current account deficit. Furthermore, an increase in renewable energy will have a positive effect on Türkiye's economic and energy outlook. The uniqueness of these findings lies in the utilization of these significant variables, which have not been previously employed in the context of the Türkiye economy.

Renewable energy transition, resource richness, economic growth, and environmental quality: Assessing the role of financial globalization

This study investigates the impact of renewable energy transition, abundance of natural resources, financial globalization, and economic growth on the ecological footprint (EF) in G-11 countries under the Environmental Kuznets Curve (EKC) framework. In addition, this study further analyzes the moderating role of financial globalization in the nexus between renewable energy transition and EF. To do this, the study used the cross-sectional autoregressive distributed lags (CS-ARDL) for the short-run and long-run estimations, which allow heterogeneity in the slope parameters and dependency across countries. The results indicate that renewable transition and financial globalization are significantly and negatively related to ecological footprint, while natural resource rent positively impacts EF. Moreover, the findings further reveal that financial globalization impedes EF through the channel of renewable energy transition, and the robustness test also validates these findings. Our results confirm the presence of the EKC hypothesis for G-11 countries. In light of these findings, the study suggests that G-11 countries should adopt policies that enhance financial globalization along with renewable energy transition and redesign policies for sustainable utilization of natural resources in order to attain sustainable development goals.

The role of monetary and fiscal policies in determining environmental pollution: Revisiting the N-shaped EKC hypothesis for China.

The equilibrium between environmental quality and economic growth is one of the contemporary objectives of fiscal and monetary policies in the case of China. In this study, we investigate the extent of the existence of the N-shaped environmental Kuznets curve (EKC) hypothesis and measure the collision of fiscal and monetary policy on carbon emissions within the economic growth perspectives that China is witnessing. This study examines the dynamic nexus between monetary supply, government expenditure, and carbon emissions in China over the spanning from 1980 to 2019. The findings demonstrate that the money supply reduces carbon emissions in the short- and long-run. Precisely, a 1-unit augmentation in monetary policy tool (money supply) will significantly reduce the pressure on the environment by 0.29332 unit in the long-run and 0.79311 unit in the short-run. In contrast, the fiscal policy instrument (government expenditure) contributes to the increase in carbon emissions. Specifically, a 1-unit increase in government expenditure will increase the carbon emission by 0.17835 and 0.48247 units in the long-run and short-run, respectively. Additionally, the result also confirmed the N-shaped EKC hypothesis. Particularly, at the initial stage of economic growth, there are 1.58659 and 4.29197 unit increas in carbon emission in the long-run and short-run, respectively. However, after taking the square of economic growth, this reduces the environmental pollution by 0.3018 and 0.81665 units in the long-run and short-run, respectively. Finally, the cubic form of economic growth shows the 0.01755 and 0.04747 units increase in the pollution level in the long-run and short-run, respectively. Moreover, the study also found the presence of a causality link between government expenditure, economic growth, and carbon emissions. These findings will aid policymakers in implementing fiscal and monetary policies that promote long-term development while lowering carbon emissions.

Nexus of renewable energy output, green technological innovation, and financial development for carbon neutrality of Asian emerging economies

Following the Paris Climate Agreement (COP26), many governments have prioritized achieving zero carbon or carbon neutrality. However, traditional operational practices won’t permit businesses to tackle climate change issues, warranting organizational leaders to capitalize on the novel, eco-friendly operational tools and techniques. The current study examines the role of renewable energy output (REO), green technological innovation (GTI), and financial development (FD) in the carbon emission level of the four emerging Asian nations from 2010 to 2021. The study used the cross-sectional autoregressive distributed lags by employing a dynamic common correlated effects estimator to address the cross-sectional dependence problem, endogeneity, non-stationarity, and slope heterogeneity. The cross-section dependence, panel unit root, and augmented mean group tests corroborated the environmental Kuznets curve (EKC) hypothesis's accuracy for emerging economies in zero carbon. It proves that the REO, GTI, and FD significantly reduce carbon emissions and strengthen national capabilities to achieve the carbon neutrality goal. The findings suggest that capitalizing on and strengthening these factors and increasing investment in green recovery projects would assist nations in attaining a sustainable environment and reducing sectoral risks and carbon emissions for a sustainable and carbon–neutral society.

Do natural resources and green technological innovation matter in addressing environmental degradation? Evidence from panel models robust to cross-sectional dependence and slope heterogeneity

This study investigates the impact of natural resources and green technological innovation on environmental degradation via carbon dioxide emissions within the framework of environmental Kuznets curve (EKC) with renewable energy consumption and urbanization as control variables. Current econometric techniques are engaged for accuracy and reliability, and the study panel is revealed to be heterogeneous and cross-sectionally based, with yearly data from Asian countries from 1990 to 2019. The Augmented Mean Group (AMG) and Dynamic Common Correlated Effects Mean Group (DCCEMG) estimators are employed to examine the connection between the variables, and the findings affirm that increasing green technological innovation and renewable energy consumption mitigate environmental degradation, while urbanization exacerbates it. Natural resources are found to have both increasing and decreasing impacts on environmental degradation. The EKC hypothesis is validated in Asia, indicating that environmental degradation rises with economic expansion until it peaks, then declines, forming an inverted U-shaped curve. The study established bi-directional causalities between economic growth and environmental degradation, natural resources and environmental degradation, renewable energy consumption and environmental degradation, and urbanization and environmental degradation. Nevertheless, uni-directional causality from green technological innovation to environmental degradation is affirmed. Therefore, it is recommended that Asian countries prioritize policies that promote the development and implementation of green technologies, such as hybrid vehicles, energy-efficient building systems, and smart grids, among others, to enable sustainable energy consumption. This will reduce resource consumption, waste production, and pollution while achieving significant cost savings.

Do natural resource rent and corruption governance reshape the environmental Kuznets curve for ecological footprint? Evidence from 158 countries

The current incompatibility between economic development and environmental protection gains growing attention. Exploring the validity of the Environmental Kuznets Curve (EKC) is crucial for the formulation of economic development and environmental protection policies, as EKC captures the economic-environmental relationship. Using the ecological footprint as a proxy variable for the environment, this study is to test the validity of the environmental Kuznets hypothesis, as well as the role of corruption and anti-corruption from the standpoint of natural resource rents and corruption governance. We investigated the nonlinear causality between variables using a panel threshold regression model of 158 countries and three income groups during 2002-18. Results show that economic growth contributes to the expansion of the ecological footprint, indicating that the EKC hypothesis is invalid. Natural resource rents strengthen the link between economic growth and environmental footprint. Controlling corruption weakens the positive relationship between economic growth and environmental footprint. Corruption exacerbates the negative impact of economic growth on the environment, whereas anti-corruption measures mitigate the negative impact of economic growth on the environment. Results from economic growth to the ecological footprint vary across three income groups. Specifically, in high-income and middle-income countries, impacts of economic growth on the ecological footprint decreases as natural resource rents rise, while the opposite for the low-income countries. However, controlling corruption reduces the environmental impacts in all three income groups but the magnitude of the impacts differs. Natural resource rents and corruption control had the greatest impact on the high-income group and the least impact on the low-income group. Finally, specific policy recommendations are made to assist countries of all income levels in promoting environmental sustainability while also promoting economic growth.

Financial sector development and testing the environmental Kuznets curve (EKC) hypothesis through a PCHVAR specification for the Middle Eastern region.

This research aims to investigate the presence of environmental Kuznets curve hypothesis while considering the financial sector variables such as financial innovation, financial inclusion, and financial development on the environmental quality as well as achieving the energy efficiency in the Middle Eastern region. Current research employs a panel conditionally homogenous autoregressive (PCHVAR) specification for the annual dataset covering the time 2001-2021. The estimates reveal that in the short run, economic growth and financial sector variables adversely affect the environment quality by emitting more greenhouse gases, whereas in the long run, higher economic growth and developed financial sector help to improve the quality of the environment and energy efficiency. These findings are also verified through the Granger causality test. This research provides insights to establish long-term policies for facilitating investments in green technology and energy conservation in the Middle Eastern region.

Asymmetrical analysis of economic complexity and economic freedom on environment in South Asia: A NARDL approach.

The environment has become a growing concern for many countries, as pollution and other environmental degradation can harm human health, economic growth, and overall well-being. This paper probes into the asymmetrical implications of economic complexity and freedom on ecological quality in four South Asian countries from 1995 to 2019. Using Nonlinear Autoregressive Distributed Lag methodology approach, our findings indicate that carbon dioxide (CO2) emissions are intensified by economic freedom both in the long and short term, while negative and positive shocks to economic complexity increase CO2 emissions in the long term. However, a negative economic complexity shock increases CO2 emissions, whereas a positive shock has the opposite effect in the short run. Moreover, our results confirm the validity of the environmental Kuznets curve (EKC) hypothesis in the long run. Furthermore, we find that renewable energy usage and the interaction of FDI and renewable energy usage can help reduce environmental damage in both the short and long run. The findings suggest that countries should focus on attracting foreign direct investment that promotes the use of renewable energy. Additionally, policies aimed at encouraging renewable energy use should be implemented. It is important to note that as economic freedom and complexity increase, there is a corresponding increase in CO2 emissions. Therefore, South Asian policy makers are advised to prioritize the reduction in fossil fuels, the promotion of energy-saving technologies and efficient production, and trade that encourages the transition of renewable energy sources to reduce CO2 emissions.

Does Clean Energy Reduce Environmental Pollution under the Environmental Kuznets Curve Hypothesis in Sri Lanka?

This study explores the nexus among clean energy, economic growth, urbanization, trade openness, and carbon dioxide (CO2) emissions nexus in an emerging economy, Sri Lanka. An autoregressive distributed lag (ARDL) econometric technique and different diagnostic tests are used to investigate the linkages. The pairwise Graner causality approach is applied to investigate the causality direction. The estimated results have confirmed that clean energy and urbanization reduce carbon emissions, whereas trade openness induces carbon emissions in the long run in Sri Lanka. The findings revealed the non-existence of the environmental Kuznets curve (EKC) hypothesis in Sri Lanka. In contrast, the pollution haven hypothesis (PHH) exists between trade openness and carbon dioxide emissions in Sri Lanka. Regarding causal relationships, there is bi-directional causality between clean energy and urbanization. This study reports a unidirectional causality from clean energy to CO2 emissions, economic development to carbon emissions, urbanization and trade and CO2 emissions to urbanization and trade. Based on the above findings, this study recommends some policy recommendations.

A dynamic relationship between renewable energy, agriculture, globalization, and ecological footprint of the five most populous countries in Asia.

This study aims to examine the impact of globalization, renewable energy consumption, and agricultural value addition on the ecological footprint of selected five most populous countries in Asia during the period 1975-2020. The Westerlund cointegration test supports long-term cointegration relationships among the considered variables in selected countries. The long-term resilience results of the second-generation cross-sectionally augmented autoregressive distributed lag approach evidently demonstrate that agricultural value addition and globalization contribute significantly to the long-term ecological footprint of the five most populous countries in Asia. However, renewable energy consumption significantly reduces the ecological footprint. Moreover, the impact of economic growth on ecological footprint is significantly positive, while the square of economic growth had a significantly negative impact on ecological footprint, thus validating the inverted U-shaped environmental Kuznets curve hypothesis for specific Asian densely populated countries. The causality test results of Dumitrescu and Hurlin support the feedback hypothesis by showing a two-way causal relationship between renewable energy consumption and economic growth. There is also a two-way causal relationship between agricultural value added and ecological footprint. Strategically, specific densely populated countries in Asia should encourage clean energy production and consumption in the agricultural sector, and the adoption of environmentally friendly technologies can improve environmental quality and agricultural production.

The Nexus Between Green Entrepreneurship and Sustainable Development: An Econometric Study

Rising industrialization helps with economic growth and is responsible for environmental pollution as well as global warming. Here, green entrepreneurs play a significant role in the reduction of this environmental pollution and sustainable development. Although the study of green entrepreneurship and its relationship with economic, social and financial growth is limited and at a nascent stage. Therefore, this study examines the relationships among green entrepreneurship and credit policy, financial development, sustainable development goals and trade openness using the ‘Environmental Kuznets Curve (EKC) hypothesis’. From this perspective, 114 countries worldwide are considered and subdivided into three sub-categories, including lower-income, middle-income and higher-income countries, based on panel data collected from the World Bank’s database. Descriptive statistics, a cross-sectional dependence test, a unit root test, long-run estimations and a multicollinearity test have been used for the data analysis. The findings of the study show that green entrepreneurship decreases environmental pollution throughout the world and enhances financial development and credit policy around the world. Likewise, income per capita helps with credit policy, economic development and green entrepreneurship. Moreover, environmental factors are positively associated with financial development and sustainable development goals. Finally, the EKC hypothesis supports the relationship for all variables throughout panel and subpanel data. Additionally, these findings could help policymakers improve policies for managing environment-friendly products and enhance green funding, considering clean investment and other green aspects of sustainable development.

The Effect of Macroeconomic Policy Uncertainty on Environmental Quality in Jordan: Evidence from The Novel Dynamic Simulations Approach

Objectives: Over the past few years, Jordan's economy has grown rapidly, placing it prominently among the world's emerging markets and developing economies rapidly. The country is known for its diverse natural resources. However, the effects of macroeconomic uncertainty, energy intensity, and trade openness on the environment have received less attention than the environmental implications of energy generation. This research fills a significant gap in the literature by investigating the impact of macroeconomic policy uncertainty on Jordan's environmental Kuznets curve from 1970 to 2021.
 Methods: This study adopted a methodological framework to simulate dynamic distributed self-regression.
 Results: The results of the study revealed that uncertainty about the future direction of macroeconomic policy accelerates the short and long-term rate of environmental degradation; economic growth accelerates environmental degradation while the square of economic growth slows it, confirming the presence of the environmental Kuznets curve hypothesis; energy density accelerates the rate of environmental quality degradation.
 Conclusions: Jordan should adopt advanced, environmentally friendly, clean technologies that transition from fossil fuels to low-carbon renewable energy sources. The government should establish strong international partnerships for technology exchange and environmental preservation. Additionally, increasing Jordan's economic complexity is crucial for achieving its environmental development goals.

Tourism development influence on environmental quality: how renewable energy use and income matter?

Tourism is a significant economic growth and development source, but it relies heavily on the energy sector and contributes to carbon dioxide (CO2) emissions. This study examines how tourism growth, renewable energy, and real GDP affect CO2 emissions in the BRICS countries. The researchers used panel unit root, Pedroni, and Kao methods to test for a long-run equilibrium relationship among the variables. The results reveal that tourism growth harms CO2 emissions in the long run, with a 1% increase in tourism growth leading to a 0.05% decrease in CO2 emissions. Renewable energy usage also harms CO2 emissions, with a 1% increase in renewable energy leading to a 0.15% decrease in CO2 emissions in the long run. CO2 emissions and real GDP show a U-shaped relationship in the long run, supporting the environmental Kuznets curve hypothesis. This hypothesis suggests that CO2 emissions increase with economic growth at low-income levels but decrease with economic growth at high-income levels. Therefore, the study implies that tourism growth can significantly lower CO2 emissions by promoting renewable energy usage and economic development.

Role of natural gas and nuclear energy consumption in fostering environmental sustainability in India

This paper investigates the role of nuclear energy in promoting ecological sustainability in India, focusing on three ecological indicators: ecological footprint (EF), CO2 emissions (CO2), and load capacity factor (LF). In addition to nuclear energy, the study considers the influence of gas consumption and other drivers of ecological sustainability using data spanning from 1970 to 2018. The analysis also takes into account the impact of the 2008 global financial crisis on the model, employing the autoregressive distributed lag (ARDL) and frequency domain causality approaches to assess the relationships. Unlike previous studies, this research evaluates both the Environmental Kuznets Curve (EKC) and load capacity curve (LCC) hypotheses. The ARDL results support the validity of both the EKC and LCC hypotheses in the Indian context. Furthermore, the findings reveal that nuclear energy and human capital contribute positively to ecological quality, while gas consumption and economic growth have a negative impact on ecological sustainability. The study also highlights the increasing effect of the 2008 global financial crisis on ecological sustainability. Additionally, the causality analysis demonstrates that nuclear energy, human capital, gas consumption, and economic growth can serve as predictors of long-term ecological sustainability in India. Based on these findings, the research presents policy recommendations that can guide efforts towards achieving SDGs 7 and 13.

Study of the Relationship between Economic Growth and Greenhouse Gas Emissions of the Shanghai Cooperation Organization Countries on the Basis of the Environmental Kuznets Curve

The present study contributes to the ongoing debate on environmental sustainability and the low-carbon agenda in terms of an analysis of a relatively new international association, the Shanghai Cooperation Organization (SCO). Based on panel data from SCO countries from 2000 to 2020, the hypothesis of the existence of the Environmental Kuznets Curve (EKC) was tested. The results showed the validity of the EKC hypothesis for the SCO countries; in particular, the gross domestic product and natural resource rents have a connection with greenhouse gas (GHG) emissions, while trade openness, foreign direct investment and the use of renewable energy sources reduce GHG emissions in the long term. It was also found that the effect of economic growth on GHG emissions in the long term in the SCO countries has the form of an inverse N-curve. Based on the analysis performed, recommendations are offered to improve energy policy in the field of alternative energy sources, natural resources—rents on them, openness to foreign markets and attracting foreign investment.

Does improving economic efficiency reduce ecological footprint? The role of financial development, renewable energy, and industrialization

With the ongoing expansion of global economic activities, environmental degradation has emerged as a progressively severe challenge. The Sustainable Development Goals are significantly impacted by this issue, making it essential to establish a symbiotic relationship between economic development and environmental protection. In this context, an investigation into the efforts of the OECD to promote ecological protection assumes a critical role, given its prominent position as a leading economic cooperation organization. Therefore, we examine the relationship between economic efficiency, financial development, renewable energy, industrialization, and ecological footprint in 36 OECD countries from 1995 to 2018. An empirical analysis employing the fully modified Ordinary Least Square technique reveals an inverted U-shaped curve relationship between economic efficiency and ecological footprint, supporting the environmental Kuznets curve (EKC) hypothesis in OECD countries. Moreover, the research reveals that financial development and industrialization exacerbate environmental damage, while the advancement of renewable energy plays a pivotal role in controlling the ecological footprint and fostering environmental conservation. Furthermore, by introducing interaction terms, we find that financial development and renewable energy weaken the positive effect of economic efficiency on the ecological footprint, while industrialization reinforces it. Finally, the findings of the Dumitrescu-Hurlin panel causality analysis show that the causal relationship between all three variables, namely economic efficiency, financial development and renewable energy consumption, and ecological footprint is bidirectional. In contrast, the causal relationship between the degree of industrialization and ecological footprint is unidirectional. These empirical findings provide practical policy recommendations for fostering sustainable development in OECD countries and offers valuable insights and lessons that can inform the formulation of relevant policies in other countries and regions. Overall, this study not only innovatively enriches the theoretical content of the EKC hypothesis from the perspective of the relationship between economic efficiency and ecological footprint, but also has important practical guidance significance.

The nexus between government spending, economic growth, and tourism under climate change: testing the CEM model for the USA.

This study examines the impact of government spending, income, and tourism consumption on CO2 emissions in the 50 US states through a novel theoretical model derived from the Armey Curve model and the Environmental Kuznets Curve hypothesis. The findings of this research are essential for policymakers to develop effective strategies for mitigating environmental pollution. Utilizing panel cointegration analysis, the study provides valuable insights into whether continued increases in government spending contribute to higher pollution levels. By identifying the threshold point of spending as a percentage of GDP, policymakers can make informed decisions to avoid the trade-off between increased spending and environmental degradation. For instance, the analysis reveals that Hawaii's tipping point is 16.40%. The empirical results underscore the importance of adopting sustainable policies that foster economic growth while minimizing environmental harm. These findings will aid policymakers in formulating targeted and efficient approaches to tackle climate change and promote long-term environmental sustainability in the United States. Moreover, the impact of tourism development on CO2 emissions varies across states, with some US states experiencing a decrease while others see an increase.

Green versus conventional growth in the EKC framework of top pollutant footprint countries: Evidence based on advanced panel data techniques

Green growth has become the most credible solution to deal with the deterioration of the environment and excessive use of natural resources. Many studies have investigated the relationship between conventional economic growth and environmental degradation in Environmental Kuznets Curve (EKC) framework. However, in this analysis, we have investigated the EKC hypothesis by including green growth instead of conventional growth. Moreover, we have relied on the ecological footprint to represent environmental degradation in this analysis. Hence, the primary focus of the research is to investigate the association between green economic growth and ecological footprint in the EKC framework of top footprint economies for 1991–2017. The study employed the CS‐ARDL model and other advanced panel data techniques to estimate the model. The analysis confirmed the EKC hypothesis in top ecological footprint economies when we use conventional economic growth; however, the estimated coefficients of green growth and its square are negatively significant. The findings imply that green growth can help reduce the environmental burden, and renewable energy, eco‐innovations, and human capital also support the cause.

Economic Growth and Environmental Pollution in Tanzania: An Environmental Kuznets Curve Analysis

The creation of a long-term linkage between economic growth and environmental protection is a subject of an ongoing discussion among scholars and policymakers. The relationship between environmental quality and economic growth is viewed from two different angles. According to the first, it is impossible to protect the environment and increase the economy at the same time since doing so will inevitably result in the extinction of either one or both. The other contends that economic advancement and higher environmental quality can be achieved simultaneously since increasing economic growth raises income levels, which in turn increases the demand for environmental protection. However, there is a disagreement over how much environmental resources should be exploited to support rapid economic expansion. This study used the approach of the Environmental Kuznets Curve (EKC) hypothesis to investigate the relationship between economic growth and environmental pollution in Tanzania. Tanzania’s economy annual data from 1970 to 2018 was used in the ARDL bounds testing for cointegration procedures. The evidence suggests that environmental pollution and economic growth have a U-shaped relationship, which rules out the existence of a traditional EKC in Tanzania. Like in many emerging economies, environmental pollution is anticipated to rise in Tanzania if economic expansion continues beyond a threshold level. The U-shaped link between economic growth and environmental pollution is important for policy formulation because both economic growth and a clean environment are welfare-enhancing; therefore, it is possible to have two policies that are mutually supportive rather than antagonistic. This can be achieved by having a proper environmental, legal, and institutional frameworks.

What drives the preferences for cleaner energy? Parametrizing the elasticities of environmental quality demand for greenhouse gases

Research background: The heterogeneity in the factors that affect demand for environmental quality implicates a diverse set of policies and actions aimed at achieving cleaner production to address the challenges posed by pollution and damage to the natural environment. Even though this topic has been widely addressed, mainly from the traditional perspective of the Environmental Kuznets Curves hypothesis (EKC), it has been assumed that the environment is a luxury good with an income elasticity greater than unity. However, it has recently been recognized that the relationship between income and demand for cleaner energy may be more complex and that further inquiry may be needed for a better understanding. Purpose of the article: This research work, employing a panel of European countries, offers direct explicit parameters for the elasticity of income-environmental quality demand for Greenhouse Gases (GHG), as well as its relationship with other important factors. It provides quantitative novel insights into the complex relationship between income and the preferences for cleaner energy. Methods: A hierarchical regression equations approach is used to analyze the evolution of the elasticity of income-environmental quality demand with the inclusion of further co-variates that are relevant for the preferences side of the EKC, such as consumption, R+D investment and BERD (Business Enterprise Research and Development). The data for the empirical study comes from a panel of 16 European countries for the period from 2010 to 2020. Findings & value added: The results show robust evidence that the elasticity of environmental quality demand, which although positive and significant, does not exceed one. To obtain an elasticity above unity, two more variables are needed, namely the R+D expenditure of business enterprises and the exposure of citizens to air pollution. These two factors have a similar or even higher effect on the preferences of agents for cleaner energy, which also means that the preferences of the citizens are endogenous to technological development. At the theoretical level, this work shows that the technological and preferences arguments are not substitute explanations of the EKC, but that technological development exerts a positive effect on the preferences of inhabitants, whose demand for environmental quality is heavily conditioned by their capabilities to see pollution, even more than by their income level. This also means that public policies directed to improve environmental awareness should be directed first towards those regions where the exposure of the citizens to pollution is lower.