The emerging consensus is that at least some forms of environmental pollution
exhibit the inverted U-shape relationship with economic growth. Figure 1 exhibits the
stylised inverted U-shape curve with pollution level (P) graphed against income level
(F). Pollution (P) increases when income level (F) is less than F* and decreases once F
exceeds F*. At the point F*, P is not affected by F (dP/dF = 0). There is nothing
automatic about this relationship. It is not an inevitable relationship between income
levels and particular environmental problems. The pattern for each environmental
problem is likely to reflect both market forces and changes in environmental policies
and regulations