Which of the following statements is/are NOT CORRECT? (A) According to the "Pollution Haven hypothesis", trade liberalisation may lead to reallocation of production to countries where either environmental regulation are ineffective or altogether absent. (B) According to the "Porter hypothesis", stringency in ensuring environmental standards often induces firms to become more efficient and prevent technological advancement and innovation. (C) According to the "Race to the Bottom hypothesis", the environmental regulation are progressively made stringent so that economies gain in competition for inward investments. (D) According to the "Environmental Kuznets curve hypothesis", there is an inverted U-shape relationship between per-capita income and environmental quality.

2 marksEnvironmental EconomicsEnvironment and sustainable developmentClimate change, trade and international environmental agreementsHardabout 3 min

GATE 2025 Question 56: Environment and sustainable development

Which of the following statements is/are NOT CORRECT?

Select all that apply.

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This question is on Climate change, trade and international environmental agreements, part of Environment and sustainable development in Environmental Economics.

Global environmental problems and the agreements and trade links that surround them.

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GATE 2025 Question 56: Environment and sustainable development

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GATE 2025 Question 56: Environment and sustainable development

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