Registered Environmental Manager (REM) Practice Exam

What does the Kuznets curve illustrate?

1. The relationship between economic growth and environmental degradation

2. The benefits of technological advancement in the workplace

3. The long-term impact of population growth on resources

4. The effectiveness of conservation efforts over time

The correct answer is: The relationship between economic growth and environmental degradation

The Kuznets curve illustrates the relationship between economic growth and environmental degradation, specifically highlighting how this relationship changes during the development process of a country. Initially, as an economy grows, environmental degradation tends to increase due to industrialization and the exploitation of natural resources. However, as a country reaches a certain level of income, it typically begins to invest in cleaner technologies and environmental regulations, leading to a decrease in pollution and environmental impact despite continued economic growth. This relationship is visually represented as an inverted U-shaped curve, where the x-axis represents economic development (or income per capita), and the y-axis represents environmental degradation (often measured by indicators such as pollution levels). The upward slope of the curve signifies increased degradation during early stages of growth, while the downward slope indicates decreasing levels of degradation as the economy matures and environmental awareness and technologies improve. The other options, while discussing relevant aspects of environmental economics and management, do not accurately capture the specific relationship that the Kuznets curve is designed to illustrate. For instance, technological advancement and population growth can impact environmental conditions, but they are not the primary focus of the Kuznets curve, which centers on the dynamic interplay between economic development and environmental quality over time.