Pollution Havens and Their Relationship to the Environmental Kuznets Curve: The Case of the us Tyre Industry

The Environmental Kuznets Curve hypothesis suggests that, as a country's national income grows, environmental degradation subsides as the population demands a cleaner environment. On the other hand, critics of the Environmental Kuznets Curve claim that many polluting industries simply relocate offshore, where environmental compliance is less costly. They then export their products back to their previous home countries. This is known as the Pollution Haven hypothesis. This article demonstrates how pollution havens can falsely give the appearance of an Environmental Kuznets Curve by analysing lead emissions from the US automotive tyre manufacturing industry.