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Environmental Performance and Economic Development: A Spatial Approach

Author

Listed:
  • Bogdan DIMA

    (West University of Timisoara, Faculty of Economics and Business Administration, Timisoara, Romania)

  • Lucian Liviu ALBU

    (Institute for Economic Forecasting, Romanian Academy)

  • Ştefana Maria DIMA

    (West University of Timisoara, Faculty of Economics and Business Administration, East European Center for Research in Economics and Business (ECREB), Timisoara, Romania)

Abstract

We explore the potential impact of countries’ environmental performance (as are these proxied by the Environmental Performance Index) on their economic development by accounting for potential spatial effects modulating the interlinkages between these variables. For this purpose, we employ the Geographically Weighted Regression (GWR) approach for a 2023 dataset of 167 countries and territories. We find that geographical location matters in explaining the capacity of a country to use its environmental performance to sustain its development path. Nonetheless, the associated effects appear to be non-linear and geographically heterogeneous. Other socioeconomic variables (such as population density, urban population and oil rents) are also relevant. The findings are robust for various GWR model specifications. Some policy implications are derived.

Suggested Citation

  • Bogdan DIMA & Lucian Liviu ALBU & Ştefana Maria DIMA, 2024. "Environmental Performance and Economic Development: A Spatial Approach," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 5-23, October.
    • Handle: RePEc:rjr:romjef:v::y:2024:i:3:p:5-23
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    References listed on IDEAS

    as
    1. Nurgül Evcim & M. Ensar Yesilyurt, 2023. "Spatial interaction and economic growth: a case of OECD countries," Future Business Journal, Springer, vol. 9(1), pages 1-10, December.
    2. Sahar Amidi & Ali Fagheh Majidi & Bakhtiar Javaheri, 2020. "Growth spillover: a spatial dynamic panel data and spatial cross section data approaches in selected Asian countries," Future Business Journal, Springer, vol. 6(1), pages 1-14, December.
    3. Sahar Amidi & Ali Fagheh Majidi & Bakhtiar Javaheri, 2020. "Growth spillover: a spatial dynamic panel data and spatial cross section data approaches in selected Asian countries," Post-Print hal-03529641, HAL.
    4. Chica-Olmo, Jorge & Sari-Hassoun, Salaheddine & Moya-Fernández, Pablo, 2020. "Spatial relationship between economic growth and renewable energy consumption in 26 European countries," Energy Economics, Elsevier, vol. 92(C).
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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