“…Most of the empirical literature that analyses the determinants of environmental outcomes focuses on per capita income and, to a lesser extent, democracy, literacy and income inequality (Selden and Song, 1994;Grossman and Krueger, 1995;Panayotou, 1997;Cole et al, 1997;Torras and Boyce, 1998;Barrett and Graddy, 2001;Neumayer, 2002aNeumayer, , 2002bNeumayer, Gates and Gleditsch, 2002). The literature generally consists of reduced form analysis of cross-country time-series data.…”