00:01
Hi.
00:03
So we are to determine the missing term in the given statement here.
00:08
Empirical studies indicate that the maximum amount of air pollution occurs blank levels of real gdp per person.
00:16
So let's understand the relationship between air pollution and real gdp per person.
00:21
Now this follows the environmental cousnuts curve or ekc.
00:40
Hypothesis.
00:47
So the, this hypothesis suggests that pollution levels increase with economic growth up to a certain point, or the middle income levels, and then start to decrease as income continues to rise.
00:58
Now, there are different stages of economic development in relation to this hypothesis.
01:03
We have low levels of real gdp per person, where an industrial activity is limited, and thus pollution levels are also relatively low.
01:12
Then we have middle income.
01:15
So as real gdp per person increases to middle income levels, the industrial activity and consumption rise leading to higher pollution levels.
01:28
And then at the high levels of real gdp per person, economies often shift towards cleaner technologies and services, and there is more investment in environmental protection leading to a decrease in pollution levels.
01:45
So let's apply this...