Pollution–income dynamics

This paper integrates the scale, composition, and technique effects of economic growth on pollution using a multi-output endogenous growth framework. Under certain empirically verifiable parameter conditions economic growth is not sustainable, even under an optimal pollution tax. •We examine a dynamic model of the pollution–income relationship.•We integrate scale, composition and technique effects of growth on pollution.•Both inter-temporal and temporal elasticities of substitution are considered.•We derive general conditions for the environmental Kuznets curve.•Conditions for eluding the limits to growth are stricter than previously argued.