Environmental Productivity and Kuznets Curve
It has been a tough trade-off decision between economic growth and environmental protection, especially in developing countries. Tireless efforts to accelerate economic growth had kept environmental considerations as secondary objectives in policy making in these countries. This indifference towards environmental protection has led to serious environmental problems in developing countries and has threatened their sustainable future. For example, damage caused by pollution in India is estimated to cost $14 billion annually, amounting to close to 4.5%–6% of GDP (Economic Survey of India, 1998–1999). In response, many developing countries have begun to enact and implement environmental policies that regulate air and water pollution and solid waste disposal in order to limit the severity of environmental degradation. The stringency of these regulations has been increasing over the years.