Voluntary Regulation and Dynamic Optimal Environmental Kuznets Curve

In this paper, we introduce a dynamic model to analyse the optimal environmental Kuznets curve. The model can be optimized with the dual constraint of environmental change and factor input growth, improving the current method of single constraint optimization in most literatures. Both environmental regulation and economic growth rate are considered and optimized. This dual optimization is quite different from the other research work, which usually only takes the former as the target. We found that there is a correlation among the intensity of environmental regulation, the economic growth rate under regulation and the endowment of environmental factors. Compared with the economy with scarce environmental factors, the economy with abundant environmental factors needs stronger environmental regulation, but the economic growth rate can be realized under environmental regulation is smaller. With the extension of growth cycle, the economic growth rate and pollution change speed under different environmental factors endowment converge.