Registered Environmental Manager (REM) Practice Exam

How does economic growth relate to pollution according to the Kuznets curve?

1. Higher economic growth correlates with increased pollution

2. Pollution levels decrease as an economy matures

3. Economic growth has no impact on pollution levels

4. Pollution levels are inversely related to technological advancements

The correct answer is: Pollution levels decrease as an economy matures

The Kuznets curve is a hypothesis that suggests there is a relationship between economic development and environmental quality. Specifically, it proposes that, in the early stages of economic development, pollution and environmental degradation are likely to increase as industrialization takes off and economies expand. However, as the economy matures and reaches a higher level of development, the trend reverses, and pollution levels begin to decrease. This phenomenon occurs because mature economies tend to have more resources to invest in cleaner technologies, stricter environmental regulations, and improved infrastructure. As societal values shift toward environmental awareness, there is often a greater emphasis on achieving sustainable growth, leading to innovative practices that reduce pollution and enhance environmental protection. Thus, the assertion that pollution levels decrease as an economy matures reflects the essence of the Kuznets curve, illustrating the possibility that higher economic development can ultimately foster a healthier environment, contrary to the initial phase of economic growth. This understanding is critical for developing strategies for sustainable economic practices in both developing and developed nations.