| Abstract: | This paper surveys the recent literature exploring the consequences of urban pollution in the developing world for a city's productivity and resident quality of life. The environmental Kuznets curve literature predicts that developing nations will experience significant environmental degradation as a byproduct of economic development. In contrast, the recent literature that we review reverses this logic by arguing that geographic areas featuring lower levels of pollution will experience economic growth through improvements in health and human capital. In an economy where pollution reduces worker productivity, inhibits child development and repels the skilled from living in such an area, those cities featuring less pollution have a competitive advantage in attracting and retaining the skilled. Given the central role that human capital plays in urban economic growth, such cities will be more likely to achieve sustainable long‐term growth. |
