scholarly journals The Environmental Efficiency-Export Performance Nexus: Fresh Evidence from the Top Environmental Performance Index (EPI) Countries

Author(s):  
Olabanji Benjamin Awodumi

Abstract The quest for sustainability and greener economies has intensified the call for more stringent environmental regulation, hence environmental efficiency of production processes that produce growth. Since trade activities represent a huge part of economic growth, while countries are becoming increasingly cautious of their imports, environmental efficiency becomes an integral consideration for trade. This study investigates the link between environmental efficiency and export performance among the top 20 countries on the environmental performance scale utilizing annual data between 1980 and 2019. The classic comparative advantage theory of international trade provides the theoretical basis for the study. Environmental efficiency scores were generated using the slack-based data envelopment analysis while the nature of causality between environmental efficiency and export performance is established using the Pairwise Dumitrescu Hurlin Panel Causality Tests and VECM Granger causality approaches. The export models are estimated using the fully modified and dynamic ordinary least squares approaches.Bidirectional causality is found between export per capita (and export intensity) and environmental efficiency for the panel analysis. Causality results is however mixed at country level with significant unidirectional causal links running from either export to environmental efficiency or otherwise. The FMOLS and DOLS analysis provides evidence of significant positive effect of environmental efficiency on export per capita and export intensity for the panel of the top EPI countries, and confirmed in most of the countries. The study therefore provides strong evidence for the role of environmental efficiency in countries’ efforts to improve their global competitiveness in trade-related activities. Thus, the study emphasizes increased global investment in environmental efficiency as the global economies grow. JEL: F18; Q56; Q58; N40

2018 ◽  
Vol 41 ◽  
pp. 02003
Author(s):  
Sergey Bereznev ◽  
Olga Zonova ◽  
Evdokiya Kulpina

The methodology of calculation of environmental performance index is considered in the article. The necessity of assessing the environmental efficiency index at the regional level in connection with which the authors attempted to adapt the indicators is proved; the recommendations on improving the national system of environmental indicators for the purpose of maximum correlation with the indicators of the environmental performance index are given.


Water ◽  
2019 ◽  
Vol 11 (12) ◽  
pp. 2445
Author(s):  
Mohsen Hajibabaei ◽  
Sara Nazif ◽  
Robert Sitzenfrei

This study proposes an algorithm for the improvement of water distribution networks (WDNs) performance using system dynamics. In the first part, the hydraulic and environmental performance of WDNs is investigated. The hydraulic performance is assessed based on the pressure of nodes and the flow velocity in pipes. Furthermore, using life cycle assessment, an environmental performance index is proposed to examine the environmental impacts of WDNs. Moreover, in order to evaluate the overall performance in regards to the costs, a value index in the system dynamics framework is proposed. Then, based on the developed framework, improvement strategies for a WDN are assessed by applying scenarios according to constraints and requirements of the network. The considered scenarios are as follows: (1) reducing per capita water demand of the WDN; (2) decreasing the average pressure in the WDN; (3) reducing the mean age of the system by its renewing; and (4) a combination of reducing the per capita water demand and average pressure in the WDN. The results indicate that the best solutions for increasing the value index in this network are: (a) to reduce the pressure of the pressure reducing valves (PRV) from 30 to 28 m; (b) to reduce the per capita water demand by the annual rate of 0.5% and 1% and decreasing the pressure of the PRV valves together. Therefore, it is shown how the developed algorithm is a purposeful approach for evaluating and improving the performance of WDNs based on the value index.


2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Niti Bhasin

With the ever-growing importance of services sector in India’s economy, this paper seeks to identify the determinants of FDI in the services sector. The study uses ordinary least squares regression analysis and examines the impact of GDP, GDP per capita, trade openness, FDI openness, and labour cost on FDI inflows. We also use another specification to include the lagged dependent variable as an explanatory variable. Using annual data for the period 1991 to 2010, we find that FDI inflows in the services sector in India are significantly determined by national income, GDP per capita, trade openness, FDI openness and skilled labour availability. This confirms the view that FDI in the services sector is efficiency-seeking and greater availability of skilled labour in India leads to greater inflows of FDI in services sector.


2018 ◽  
Vol 2 (1) ◽  
pp. 25-40
Author(s):  
Arno Tausch ◽  
Almas Heshmati

In multiple standard OLS regression models, we test the effects of 26 standard predictor variables, including the ‘four freedoms’ of goods, capital, labour and services, on the following indicators of sustainable development: avoiding net trade of ecological footprint gha per person, Carbon emissions per million US dollars GDP, CO2 per capita, Environmental Performance Index (EPI), Global footprint per capita, Happy Life Years, Happy Planet Index, and ln (number of people per mill inhabitants 1980-2000 killed by natural disasters per year+1). Our research shows that the apprehensions of quantitative globalization critical research are fully vindicated by the significant negative environmental effects of the foreign savings rate. High foreign savings are indeed a driver of global footprint, and are a blockade against a satisfactory Happy Planet Index performance. The New International Division of Labour (NIDL)-model (Froebel et al., 1980) is one of the prime drivers of high CO2 per capita emissions. MNC penetration, the master variable of most quantitative dependency theories, blocks environmental performance (EPI-Index) and several other socially important processes. Worker remittances have a significant positive effect on the Happy Planet Index, and Happy Life Years.


Author(s):  
Olimpia Neagu ◽  
Doru Ioan Ardelean ◽  
Vasile Lazăr

Abstract The aim of the paper is to explore the association between environmental performance and income level in the world economy in 2016. Data from Yale University and World Bank are used in a cross-country regression analysis comprising 166 countries. The gross Domestic Product per capita (based in purchased power parity, constant 2011 international dollars) in these countries is positively associated with the environmental performance index (EPI) calculated by Yale and Columbia University in 2016. Furthermore, the causality of this relationship is from GDP per capita to Environmental Performance and both Environmental Health (EH) and Ecosystem Vitality (EV) are positively associated with GDP per capita. Environmental Health (EH) is stronger related to GDP per capita, meaning that investments in public health, sanitation and infrastructure are increasing as countries develop.


Author(s):  
Eirini Boleti ◽  
Antonios Garas ◽  
Alexandra Kyriakou ◽  
Athanasios Lapatinas

AbstractIn this paper, we analyze the relationship between economic complexity and environmental performance using annual data on 88 developed and developing countries for the period of 2002–2012. We use the Economic Complexity Index, which links a country’s productive structure with the amount of knowledge and know-how embodied in the goods it produces, and the Environmental Performance Index as a measure of environmental performance. We show that moving to higher levels of economic complexity leads to better overall environmental performance, which means that sophistication of exported products does not induce environmental degradation. Nevertheless, we find that the effect of economic complexity on air quality is negative, i.e., exposure to PM2.5, CO$$_2$$ 2 , methane and nitrous oxide emissions increases, and these findings are robust across alternative econometric specifications.


2021 ◽  
Author(s):  
Özlem Taşseven ◽  
Naci Yılmaz

The main objective of this study is to investigate the short and the long run relationships between bilateral export performance of China to United States using variables such as the real exchange rate of dollar to yuan, the growth of per capita US GDP, the growth of per capita Chinese GDP. The annual data covers the period between 2001 and 2018. The Johansen testing approach to cointegration is performed in the estimation process. The causalities among the variables in the model are determined based on the estimated models. The empirical results reveal that the variables of interest are cointegrated. Real exchange rate has no significant effect on Chinese exports to the US, whereas the growth of per capita US GDP and the growth of per capita GDP of China have positive and significant effects. Our findings suggest that United States should concentrate on the growth of both two countries rather than focusing on the low level of Chinese domestic currency.


2020 ◽  
Vol 12 (11) ◽  
pp. 4736
Author(s):  
Dohyung Kim ◽  
Sun Go

Human capital has been shown as an important determinant of environmental performance at the firm and province levels. We try to identify the impact of human capital on environmental performance at the country level. To address potential endogeneity and measurement errors regarding human capital, we use the primary school enrollment rate a century ago as an instrument for today’s human capital stock. The instrumental variable estimation, based on a sample of 72 countries, shows that human capital has a statistically significant effect on the Environmental Performance Index, a composite measure of national environmental performance, primarily through improving biodiversity, habitat, and sustainable agriculture, all of which are the indicators related to environmental sustainability. These findings from cross-country analysis are broadly consistent with those of firm-level or province-level studies, emphasizing the role of human capital in enhancing the awareness of and compliance with environmental regulations, thus leading to an improvement in environmental performance.


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