The relationship between population and the environment and its impact on sustainable development in Egypt using a multi-equation model

The relationship between population and the environment is a significant issue due to its impact on chances for achieving sustainable development, especially in developing countries. Previous studies on this relationship have primarily focused on the impact of population growth on the environment, while the impact of the environment on population has received less attention, where most of these studies have used single-equation models (SEM) in their analysis. In order to capture the interrelationship between population growth and the environment, and both its direct and indirect effects on the potential for achieving sustainable development, SEM may not be appropriate. This paper takes a step forward in providing such empirical evidence, by developing a multi-equation model based on the recursive equation system in order to empirically examine the relationship between population growth and the environment in terms of air pollution represented by increased CO2 emissions, health level represented by the mortality and morbidity due to air pollution, and labour productivity represented by GDP per hour worked, and using a time series data set for Egypt during the period of 1950–2010. Quantitatively, the current study finds that (1) In Egypt, a 1% increase in population raises the CO2 emissions by 2.4%. (2) An increase in CO2 emissions by 1% is associated with an increase in deaths due to outdoor air pollution (respiratory and cardiovascular diseases) by 2.5%. (3) Poor health due to air pollution leads to a decrease in labour productivity by 1.58%. (4) The impact of population growth on chances for sustainable development depends on how much the rise in air pollution decreases labour productivity through raising the rate of morbidity. (5) Even when rapid population growth rate plays a minor role in creating a specific problem, such as its indirect negative impact on labour productivity and thus economic growth, population management policies may still constitute a viable measure for dealing with that problem, especially with respect to policy intervention cost. The study argues that population growth in Egypt negatively affects the state’s ability to achieve sustainable development via its negative impact on the environment. Environmental degradation in turn leads to adverse effects on population, particularly with regard to public health. These negative effects on health lead to lower labour productivity, and thus hinder the state’s ability to sustain development.