Abstract

Japanese economy achieved a rapid economic development process for the period of 1950-1980 with environmental problems. By the by mid 1970s, Japan introduced important environmental regulatory reforms and environmental clean-up reforms. However, Japan faced challenged both environmental problems and economic stagnation since 1990s.

In this study, Environmental Kuznets curve is analysed for Japanese economy for the period 1960 to 2010 using annual data by using cointegration test with structural breaks by developed Maki (2012). Environmental Kuznets curve means there is an inverted-U relationship between environmental degradation and income per capita. In the study it is found that the N-shaped Kuznets curve confirmed for Japanese economy for the period.