The Environmental Kuznets Curve proposes an inverted U-shaped relationship between some measures of environmental degradation and per capita income. At low income levels, pollution tends to rise with industrialisation and lack of regulation. After a threshold income, societies may demand cleaner environments and invest in efficient technologies, leading to declining pollution levels. Thus, the hypothesis suggests that degradation first increases and then decreases with rising income, which is captured in Option B.
Option A:
Option A is incorrect because it assumes a simple continuous decline in degradation with rising income, ignoring the initial phase of industrial growth where pollution usually increases.
Option B:
Option B is correct since it reflects the characteristic inverted U shape, with a turning point at some intermediate income level. It aligns with the original formulation of the EKC hypothesis used in environment and development debates.
Option C:
Option C is incorrect as it states that income and degradation are completely unrelated. Empirical studies show that economic activity strongly influences environmental pressure, even if the exact EKC pattern may not hold for all pollutants.
Option D:
Option D is incorrect because it implies that degradation always increases with income and never improves. This contradicts the EKC idea and ignores evidence of environmental improvements in some high-income countries.
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