This paper using DEA window analysis measures for the first time the environmental performance of 17 OECD countries for the time period 1980-2002. Then by applying panel data econometric methods we find that there is not a Kuznets type relationship between environmental performance and income. Allowing for dynamic effects we find that the adjustment to the target ratio is instantaneous. We also find that increased economic activity does not always ensure environmental protection and thus the path of growth is important in addition to the growth itself.
