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Interrelationships and Causal Linkages Between Socioeconomic and Environmental Factors

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Author Info
Mariam, Yohannes
Barre, Mike
Urquhart, Lynda
DeCivita, Paul

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Abstract

The purpose of this study was to examine interrelationship and causal linkages between socioeconomic and environmental variables in OECD countries. To aid this study, a LISREL modelling tool was implemented. The findings of the study indicated that gross public debt increases with deterioration in air quality in North America, Asia and the Pacific, Central, Eastern and Atlantic regions of Western Europe. Energy consumption contributes to deterioration of air quality in all regions. Economic growth, measured by growth in GDP, accelerates deterioration of air quality in all regions except in Southern and Eastern regions of Western Europe. Increases in energy consumption and economic growth contribute to declines in gross public debt in most OECD countries. Spending for environmental protection contributes to reduced emission of CO2 in all regions of Europe except Asia/Pacific and North America. Expenditure for environmental protection causes increases in public debt in all regions. However, environmental expenditure exerts positive impact on economic growth in Asia/Pacific and Central Europe. Spending in environmental protection is associated with reduction in emissions of most pollutants except in North America and Asia/Pacific and Southern regions of Western Europe. The findings also indicated that in regions where emission of SO2 is the greatest, harvesting of forests increased while fish catches declined. Emission of NOx is associated with increases in agricultural production in most regions, except in Southern and Atlantic regions of Western Europe and North America. Emission of VOCs contributed to reduction in agricultural production in most regions except in Central regions of Western Europe. In summary, economic growth tends to significantly contribute to energy consumption and deterioration of air quality. However, the later can be improved through aggressive spending in environmental protection. Therefore, it is imperative to identify a strategy that would balance economic growth and energy consumption with improved environmental quality

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 664.

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Date of creation: 1997
Date of revision: 01 Jun 1997
Handle: RePEc:pra:mprapa:664

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Related research
Keywords: Interrelationship; causal linkages; socioeconomic; environmental; OECD; LISREL; modeling; air quality; energy consumption; environmental protection; emission; SO2; NOx; VOCs; economic growth; human health;

Find related papers by JEL classification:
Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions
C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Econometric and Statistical Methods; Specific Distributions
C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Estimation
Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Costs; Distributional Effects; Employment Effects
P12 - Economic Systems - - Capitalist Systems - - - Capitalist Enterprises
Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounting
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis
C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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  1. Mariam, Yohannes, 1999. "Trends in Resource Extraction and Implications for Sustainability in Canada," MPRA Paper 669, University Library of Munich, Germany, revised 01 Jun 1999. [Downloadable!]
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