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The Impact Of Growth On Biodiversity: An Empirical Assessment

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  • Roberta DE SANTIS

Abstract

Several studies investigating environmental Kuznets curve (EKC) relationship for biodiversity, suffer from limitations and the empirical evidence is inconclusive. More specifically, with few exceptions, the previous EKC studies for biodiversity looked into the diversity of a particular species or a number of species rather than a broader measure of biodiversity. In addition, these studies do not control for some economic factors that could directly or indirectly affect the biodiversity stock such as trade and foreign direct investments. The innovative features of this paper are its attempts to estimate an ECK for biodiversity using an overall index of biodiversity and the inclusion in the traditional ECK equation of proxies for trade and FDI. We also tested the impact on biodiversity of the membership in agreements for biodiversity protection. According to our estimates the ECK is partially verified. Rising incomes are associated with increasing biodiversity then with decreasing biodiversity and eventually with increasing biodiversity again.

Suggested Citation

  • Roberta DE SANTIS, 2012. "The Impact Of Growth On Biodiversity: An Empirical Assessment," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 7(3(21)/ Fa), pages 283-290.
  • Handle: RePEc:ush:jaessh:v:7:y:2012:i:3(21)_fall2012:p:283
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    References listed on IDEAS

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    1. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
    2. John Asafu-Adjaye, 2003. "Biodiversity Loss and Economic Growth: A Cross-Country Analysis," Contemporary Economic Policy, Western Economic Association International, vol. 21(2), pages 173-185, April.
    3. William T. Harbaugh & Arik Levinson & David Molloy Wilson, 2002. "Reexamining The Empirical Evidence For An Environmental Kuznets Curve," The Review of Economics and Statistics, MIT Press, vol. 84(3), pages 541-551, August.
    4. Grossman, Gene M. & Krueger, Alan B., 1996. "The inverted-U: what does it mean?," Environment and Development Economics, Cambridge University Press, vol. 1(01), pages 119-122, February.
    5. Stern, David I. & Common, Michael S., 2001. "Is There an Environmental Kuznets Curve for Sulfur?," Journal of Environmental Economics and Management, Elsevier, vol. 41(2), pages 162-178, March.
    6. Rock, Michael T., 1996. "Pollution intensity of GDP and trade policy: Can the World Bank be wrong?," World Development, Elsevier, vol. 24(3), pages 471-479, March.
    7. Stern , David I., 1998. "Progress on the environmental Kuznets curve?," Environment and Development Economics, Cambridge University Press, vol. 3(02), pages 173-196, May.
    8. Jie He, 2007. "Is the Environmental Kuznets Curve hypothesis valid for developing countries? A survey," Cahiers de recherche 07-03, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    9. A Omer & U Pascual & N Russell, 2003. "Agricultural Intensification and Biodiversity Loss: Is There and Agri-EKC?," The School of Economics Discussion Paper Series 0317, Economics, The University of Manchester.
    10. Pallab Majumder & Robert P. Berrens & Alok K. Bohara, 2006. "Is there an environmental kuznets curve for the risk of biodiversity loss?," Journal of Developing Areas, Tennessee State University, College of Business, vol. 39(2), pages 175-190, January-M.
    11. Roberta De Santis, 2012. "Impact of Environmental Regulations on Trade in the Main EU Countries: Conflict or Synergy?," The World Economy, Wiley Blackwell, vol. 35(7), pages 799-815, July.
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    More about this item

    Keywords

    Biodiversity risk; trade; FDI; environmental Kuznets curve;

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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