Structural Change and Environmental Kuznets Curves

The Environmental Kuznets Curve hypothesis (EKC) postulates an inverted u-shaped curve between important pollutants and per capita GDP analogous to the relationship between income inequality and income per capita which has been analysed by Kuznets in 1955. The article focuses on an empirical analysis of structural change between branches as one major determinant of EKC's. The results of a cointegration analysis show that amongst other determinants the decline of environmental intensive branches in Germany during the last decades can be econometrically explained by the development of energy prices and the so-called Fourastie hypothesis