Today we are going to talk about a phenomenon which is often referred to as the Environmental Kuznets Curve. The theory behind this idea can be summed up in these three steps:
1. When an economy is primarily pre-industrial and agrarian, the environment is usually clean and untouched by pollutants from industrial economic activities.
2. As the economy shifts towards development and industrialization, the environment is at a higher risk of being harmed by pollution and depletion of natural resources.
3. The curve then returns to a cleaner environment when economic growth continues, and people choose to spend their incomes on improving the environment by cleaning water and improving air quality. People become more aware of the benefits to the environment.