Environmental Quality and Economic Development

1979 ◽  
Vol 11 (10) ◽  
pp. 1147-1156
Author(s):  
P Shapiro ◽  
T Miyao ◽  
T R Smith

Economic growth invariably leads to environmental degradation. But in this paper it is shown that economic development may be necessary before a country will adopt a policy of environmental protection. Within the context of an optimal-policy model, this proposition is proved and an optimal policy is derived. It is shown that knowledge of preferences for environmental quality is necessary for such a policy of environmental protection. It is then shown how such preferences can be estimated from market demand. The estimation is carried out with select consumption data.

2019 ◽  
Vol 30 (2) ◽  
pp. 483-494 ◽  
Author(s):  
Jing Sun ◽  
Jing Wang ◽  
Tao Wang ◽  
Tao Zhang

PurposeGiven the recent rapid economic development, the processes of industrialization and urbanization are accelerating. At the same time, the contradiction between environmental quality and economic development has become increasingly prominent and is likely to restrict the normal pace of China’s economic development and environmental protection. As such, the purpose of this paper is to incorporate the urbanization factor into an analytic framework to discuss the relationship among urbanization, economic development, and environmental pollution.Design/methodology/approachA panel data of 31 Chinese provinces from 2004 to 2015 is selected for this research. A spatial correlation test is first conducted on the environmental pollution status, then the spatial Durbin model is used to carry out spatial econometric testing of the relationship among the above three factors.FindingsInterprovincial environmental pollution in China has significant positive spatial correlation, environmental pollution discharge in most provinces is significantly stable, discharge of environmental pollutants is transitioning from coastal to inland provinces, and urbanization and economic growth can both aggravate environmental pollution, but economic growth can relieve environmental pollution in neighboring provinces.Originality/valueThe relationship between economic growth, urbanization, and environmental quality has always been an important issue for sustainable development. As such, China’s urbanization leads to economic development, while rapid economic growth and environmental pollution are coordinated. This paper focuses on the specific relationship between them. To this end, local governments make concerted efforts to formulate sound environmental regulation policies based on local environmental conditions, where economic development is an effective means of alleviating the contradictory relationship between economic development and environmental protection.


2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Tingliu Xu ◽  
Yingjie Xiao ◽  
Chatchai Khiewngamdee ◽  
Qin Lin

In the past few years, the marine ecosystem has been a cheap resource in developing countries in the process of pursuing short-term vested interests. Therefore, high economic development of the developing countries is at a huge environmental cost. Nowadays, environmental protection is becoming a global concern. In this background, the government of the developing countries begins to formulate reasonable marine economic and environmental policies to find a balance between rapid economic development and marine environmental protection. In this contribution, a dynamic stochastic general equilibrium model (DSGE) is constructed with the environmental constraints, and Bayesian estimation is used to calibrate the main parameters. Next, the model is employed to analyze the effects of government and consumer environmental preferences on macroeconomic variables, environmental quality, and consumer and government utility. Results show that the government’s preference for environmental quality is positively related to port environmental quality and negatively related to output, capital stock, and consumption. An enhancement of the environmental quality preference of the target audience can realize balanced development of economic growth and port environmental quality. The findings are conducive to coordinating the relationship between economic development and environmental protection and achieving sustainable development of the port.


2021 ◽  
Vol 4 (1) ◽  
pp. 92
Author(s):  
Tea Kasradze ◽  
Nino Zarnadze

Numerous studies show that there is a positive correlation between education and the economic development of the country. Strong education systems have a positive impact not only on the success of individuals but also on the economy of the entire country. Graduates equipped with the skills required by the labor market can easily find a place in this market. Knowledge and skills relevant to market demand increase productivity have a positive impact on economic growth and development. Unfortunately, Covid Pandemic has severely damaged the education systems. Governments, scientists, and experts provide us with statistical information daily around the world about both the slowdown in economic growth as a whole and the problems of individual sectors of the economy. These are the problems and numbers that are already visible and it can be said that the losses are easily measurable. However, the damage caused to the economy by education systems affected by the pandemic will be felt by countries and humanity years later, nor will it be easy to calculate. The problem is even more difficult in poor and developing countries. This paper aims to study the impact of the Covid Pandemic on the education system and economy in Georgia. The research examines the reports and studies of various international organizations, analyzing the secondary data obtained from them. Local policy documents, government reports and regulations, and papers of different researchers have also been studied, conclusions have been made and relevant recommendations have been developed.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hammed Oluwaseyi Musibau ◽  
Waliu Olawale Shittu ◽  
Fatai Olarewaju Ogunlana

Purpose The purpose of this paper is to study the relationship among environmental degradation, energy use and economic growth, thus lending a voice to testing the relevance, or otherwise, of the environmental Kuznets curve (EKC) hypothesis in Nigeria. Design/methodology/approach The authors rely on the secondary data obtained from World Bank’s World Development Indicators for Nigeria, between 1981 and 2014. The non-linear autoregressive distributed lag (ARDL) technique is used after examining the unit root properties – using the augmented Dickey–Fuller and Phillips–Perron methods – and the long-run relationship – using the ARDL bounds approach to estimate the asymmetries in the effects of economic growth on the environment. Findings The findings of this study uphold the relevance of the EKC hypothesis in Nigeria, as the growth of GDP first reduces the environmental quality but raises it over time. Furthermore, the use of energy is found to deteriorate environmental quality, given that CO2 rises by 0.002% for a unit increase in the consumption of energy in Nigeria. Research limitations/implications A limitation to this research is the data coverage, which is just between 1981 and 2014, based on availability. One other limitation is the use of electric power consumption as a proxy for energy use (because of the difficulty in obtaining accurate data on energy consumption in Nigeria). Future research should, therefore, test different other proxies, to either agree with the findings or justify any deviation therefrom. Also, the use of up-to-date data is recommended as an improvement to this study, while a non-linear technique should be used on studies involving the panel of countries. Originality/value Many studies have examined this relationship by simply taking the square of GDP as a measure of its non-linear effect on the environment. The authors are one of the first who consider the asymmetric effect of economic growth on the environment through the non-linear ARDL technique. With this, the partial sums of positive and negative changes in economic growth on the environment are easily established.


2021 ◽  
Vol 22 (2) ◽  
pp. Layouting
Author(s):  
M Irsyad Ilham

This study analyzed the relationship of economic development, population density, and the number of vehicles on environmental degradation from 31 provinces in Indonesia for the period 2011-2019. Panel data analysis, which is widely used to examine issues that could not be studied in either cross-section or time-series alone, is used herein. The empirical results support the hypothesis on the direction of causality from those three factors of environmental damage in the country. The results concluded that economic development, population density, and the number of vehicles impacted on environmental degradation in Indonesia. The smallest cross-section random effect indicates the lowest environmental quality when all factors are fixed. The empirical findings provide important policy implications for Indonesia and it will direct its economic development model towards a green economic one. On the other hand, the growth of the population should be equalized with growth in human development. The distribution of population should be equalized among provinces by opening a new economic cluster to supply new work-fields. In addition, it should be for the country to create a more-educated population in order to protect environmental quality. Despite the unstoppable growth of vehicles, the government should implement the development of eco-friendly combustion technology besides reducing fuel consumption. Moreover, the road-making by plastic-based material can be considered to prevent land damage from plastic waste and might also recycle plastics which has caused pollution in Indonesia.


Author(s):  
Fitri Kartiasih ◽  
Wanda Pribadi

Poverty is both a cause and a victim of deteriorating environmental quality. The poor are regarded as very dependent on the environment and natural resources in sustaining their lives so that the environment and natural resources are exploited regardless of their sustainability. On the other hand, environmental degradation causes the poor to get out of poverty. This study aims to (1) analyze the general picture of environmental quality and poverty, (2) analyze the effect of poverty on the environment, (3) analyze the effect of environmental quality on poverty along with other supporting factors in Indonesia 2012-2014. The analytical method used is simultaneous equation with EC2SLS method. The results show that poverty can affect environmental degradation but not vice versa. Exogenous variables that significantly affect the quality of the environment are the growth of the number of poor, economic growth, population density, and literacy rate. Exogenous variables that have significant effect on poverty are economic growth, wage, population density, and literacy rate.


2021 ◽  
Author(s):  
Abdimalik Ali Warsame ◽  
Samuel Asumadu Sarkodie

Abstract While there are enormous studies on climate change in stable countries, climate policy perspectives from conflict-prone regions including Somalia are limited. This study investigates the asymmetric impact of energy and economic growth on environmental degradation in Somalia—by employing nonlinear autoregressive distributed lag model (NARDL) and causal techniques from 1985 to 2017. We find asymmetric long-term cointegration among the variables, whereas energy consumption and economic growth asymmetrically affect environmental degradation. Besides, the causal inferences reveal unidirectional causality from environmental pollution to positive change in energy consumption. Additionally, we find unidirectional causality from negative shock in economic growth to positive shock in economic growth. Moreover, a bidirectional causality is observed between population growth and negative change in economic growth. A unidirectional causality is confirmed from positive shock in economic growth to population growth—from negative change in economic growth to negative shock in energy consumption—from positive change in economic growth to positive shock in energy consumption—and negative change in energy consumption to population growth. This calls for the implementation of clean energy investment policies, good farming methods, and improved grazing land policies. The adoption of these policies will improve both environmental quality and sustained economic development.


2019 ◽  
Vol 6 (6) ◽  
pp. 140
Author(s):  
Hoang Ngoc Phong ◽  
Nguyen Cong My ◽  
Bùi Thị Thanh Hoa ◽  
Lê Bich Ngoc

This work is to test the hypothesis of sustainable economic development by using a linear structural model. The structural equations in the structural model show that, the social development goals depend on economic growth and environmental protection goals, namely (Social target) = 1.22 * (Economic target) - 0.064 * (Environment target) and economic  development target depend on social development goals and environmental protection goals, namely (Economy target) = 1.35 * (Social target) - 0.039 * (Environment target). The result show that both economic and social development have an adverse environmental impact that will no longer harmonize goals, reflecting the unsustainable marine economic development in the period of 2011-2018. There have many factors of unsustainable marine economic development in period 2011-2018, but mainly is low economic growth efficiency, low labor productivity and  the process of urbanization does not truly create a foundation for economic development.


2020 ◽  
Vol 16 (6) ◽  
pp. 1148-1164
Author(s):  
Chi Chang ◽  
V.M. Zaernyuk

Subject. China's industrial sectors are important vehicles that made China the global leader of GDP and economic growth. However, China managed to reach such results sacrificing its environment. The study discusses the coordination of actions spurring the economic growth and environmental protection in order to avoid such sacrifices for the sake of the national economic development. Objectives. We examine the mechanism of bilateral effects on the economic growth of China's industries and environmental protection to provide the empirical framework for the reasonable natural protection policy and environmental regulations. Methods. Theoretical projections stem from the analysis of economic literature and empirical research on resources, environment and sustainable economic development in the existing theories of economic growth. Results. Having analyzed how the environmental pollution and the industrial economic growth of China correlated, we found that a set of various environmental pollution indicators strongly differed from the empirical findings of the study. Therefore, it is still not found how the economic growth of China influenced the environmental pollution. Conclusions and Relevance. The improvement of the environmental quality is not an unavoidable endogenous result of the economic growth. If the Chinese industrial sectors continues growing extensively, the environment will grow even more polluted. It is necessary to determine a reasonable environmental protection policy to combine it with economic growth, and tighten the environmental regulations.


Author(s):  
Adem Gök

The chapter investigates the role of FDI on growth, the role of FDI on environmental quality, and the role of environmental quality on FDI in 23 emerging market economies over the period of 1993-2014 by panel VAR analysis. It observes that FDI contributes to economic growth and environmental degradation in emerging market economies. In addition, environmental degradation attracts FDI inflows into host emerging market economies. The results support pollution haven hypothesis and contradict pollution halo hypothesis.


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