Sunday, September 27, 2015

How capitalism improves the environment


In the 1950s, the Belarussian-born American economist Simon Kuznets hypothesized that income inequality as a nation industrializes can be shaped like an inverted U—it increases in the early stages of growth, reaches an apex, and then starts tapering down as the economy matures. The switch begins to happen after a critical mass of people abandon farm life for the big cities, where they obtain better education, benefit from economies of scale, and start agitating for policy changes.

Ironically, at a time when Kuznets' original concept has come under intensified attack in the inequality-obsessed developed world, its application to the environment has gained considerable purchase both academically and observationally. As Science Correspondent Ronald Bailey traces in "The End of Doom" (page 20), many of the woes that people still assume are getting worse are actually improving in the most advanced countries.

No comments: