The Environmental Kuznets Curve (EKC) shows the relationship between per capita GDP and environmental loss. What is the shape of Environmental Kuznets Curve?
Verified Answer
A. Inverted "U" shaped
B. Inverted "V" shaped
C. Inverted 'L' shaped
D. None of these
Explanation:
The Environmental Kuznets Curve (EKC) hypothesizes that as an economy develops, environmental degradation first increases and then decreases, forming an inverted U-shape. This implies that at low levels of development, pollution increases with growth, but at higher levels, societies have the resources and willingness to invest in environmental protection.