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Constructing Aggregate Environmental-Economic Indicators: A Comparison of 12 OECD Countries

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Author Info
Jeroen C.J.M. van den Bergh ()
D.B. van Veen-Groot (Vrije Universiteit Amsterdam)

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Abstract

The application of aggregate indicators in environmental-economic research has received little attention so far. An important reason is the incompleteness of environmental data. This article presents a systematic approach to construct indicators of environment and economy on a macro level. It includes a distinction into the following categories: the volume of economic activities as an indicator of potential environmental pressure; actual environmental pressure; environmental quality; and environmental policy. In each category aggregate indicators are calculated for 12 OECD countries. Subsequently, the correlation between these indicators is examined. Significant correlation is found between the economic activity indicators (or 'potential' environmental pressure), actual environmental pressure and environmental quality, whereas a very weak correlation exists with these indicators and two types of aggregate indicators of environmental policy. Due to some arbitrary choices, which are inevitable, the results are to be judged with caution. Several suggestions are offered to improve the calculation and comparison of aggregate indicators.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 99-064/3.

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Date of creation: 17 Aug 1999
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Handle: RePEc:dgr:uvatin:19990064

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  1. den Butter, F. A. G. & van der Eyden, J. A. C., 1998. "A pilot index for environmental policy in The Netherlands," Energy Policy, Elsevier, vol. 26(2), pages 95-101, February. [Downloadable!] (restricted)
  2. de Bruyn, S. M. & Opschoor, J. B., 1997. "Developments in the throughput-income relationship: theoretical and empirical observations," Ecological Economics, Elsevier, vol. 20(3), pages 255-268, March. [Downloadable!] (restricted)
  3. van Beers, Cees & van den Bergh, Jeroen C J M, 1997. "An Empirical Multi-country Analysis of the Impact of Environmental Regulations on Foreign Trade Flows," Kyklos, Blackwell Publishing, vol. 50(1), pages 29-46.
  4. van den Bergh, Jeroen C. J. M. & Verbruggen, Harmen, 1999. "Spatial sustainability, trade and indicators: an evaluation of the 'ecological footprint'," Ecological Economics, Elsevier, vol. 29(1), pages 61-72, April. [Downloadable!] (restricted)
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