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A comparative analysis of the drivers of environmental and human development aspects in the United States of America and China

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  • Edmund Ntom Udemba

    (Shanxi Technology and Business University, China
    Nisantasi University)

  • Andrew Adewale Alola

    (Nisantasi University
    Inland Norway University of Applied Sciences
    Lebanese American University)

  • Dongming Zhang

    (Beijing Open University)

Abstract

The significance of this study is the insight from comparing the largest economies in the world, i.e., the United States of America (USA) and China with the two most important aspects of sustainable development goals, the human development index (HDI) and environmental development and management. Hence, this study is significant in policy wise, by acting as a pace setting study in policy adoption by other economies that are looking up to the development patterns of the applied economies (the USA and China) in achieving their sustainable development goals. Quarterly dataset (2000Q1–2018Q4) for USA and China are utilized for this study. Relevant policy-based instruments (human development index—HDI, carbon emissions—CO2 emission, energy efficiency, education, entrepreneurial activities and trade) and scientific approaches (symmetric-autoregressive distributed lag—ARDL and Granger causality) are used in a two-model (models for economic welfare—HDI and environment—CO2 emission) quantitative analysis. Findings show that energy efficiency, education, entrepreneurial activities and trade all have positive and negative links with HDI and CO2 emission, respectively, in both economies, thus pointing toward achieving sustainable development goals 2030. Findings from the Granger causality analysis support the ARDL results with feedback transmission between the instruments and the two indicators for sustainability. The only difference is the interaction that exists between HDI and carbon emission in each economy. In the case of USA, both economic welfare and environment are improving with negative link between HDI and CO2 emission which points to inclusive sustainable development for USA. However, a positive link exists between HDI and CO2 emission which means that economic development is maintained to the detriment of the environment. Policy insight from the result suggests that, while USA sustainable development is inclusive in nature (economy and environment), China’s sustainable development is only rooted in economic development.

Suggested Citation

  • Edmund Ntom Udemba & Andrew Adewale Alola & Dongming Zhang, 2025. "A comparative analysis of the drivers of environmental and human development aspects in the United States of America and China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(3), pages 7163-7191, March.
    • Handle: RePEc:spr:endesu:v:27:y:2025:i:3:d:10.1007_s10668-023-04185-x
    DOI: 10.1007/s10668-023-04185-x
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    References listed on IDEAS

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