(a) Why might there be a negative relationship between gross domestic product (GDP) and environmental quality for a country? Why might there be a positive relationship between GDP and environmental quality?
(b) Do you expect all pollutants for one country to have the same shape of environmental Kuznets curve? If so, what shape do you expect? If not, does the EKC always imply that a country can grow its way out of polluting?
(c) If increased GNP is associated with improved environmental quality, does this relationship mean that a cleaner environment comes at no cost-actually at positive benefit-to GNP? If so, why is environmental regulation so often opposed? If not, what explanation exists for this relationship?