Environment, Human Development and Economic Growth after Liberalisation : An Analysis of Indian States
Economic growth does not necessarily ensure environmental sustainability for a country. The relationship between the two is far more complicated for developing countries like India, given the dependence of a large section of the population on natural resources for livelihood. Under this backdrop, the current study attempts to analyze the relationships among Environmental Quality (EQ), Human Development (HD) and Economic Growth (EG) for 14 major Indian States during post liberalisation period (1991-2004). Further, for understanding the changes in EQ with the advancement of economic liberalisation, the analysis is carried out by dividing the sample period into two : Period A (19901996) and Period B (19972004). For both the sub-periods, 63 environmental indicators have been clustered under eight broad environmental groups and an overall index of EQ using the HDI methodology. The EQ ranks of the States exhibit variation over time, implying that environment has both spatial and temporal dimensions. Ranking of the States across different environmental criteria (groups) show that different States possess different strengths and weaknesses in managing various aspects of EQ. The HDI rankings of the States for the two periods are constructed by the HDI technique following the National Human Development Report 2001 methodology. We attempt to test for the Environmental Kuznets Curve hypothesis through multivariate OLS regression models, which indicate presence of non-linear relationship between several individual environmental groups and per capita net state domestic product (PCNSDP). The relationship between EQ and economic growth however does not become clear from the current study. The regression results involving individual environment groups and HDI score indicate a slanting N-shaped relationship. The paper concludes that individual States should adopt environmental management practices based on their local (at the most disaggregated level) environmental information. Moreover, since environmental sustainability and human well-being are complementary to each other, individual States should attempt to translate the economic growth to human well-being.
|Date of creation:||Jan 2007|
|Date of revision:|
|Contact details of provider:|| Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200|
Web page: http://www.eaber.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James Boyce, 2003. "Inequality and Environmental Protection," Working Papers wp52, Political Economy Research Institute, University of Massachusetts at Amherst.
- Dasgupta, Partha, 2001. "Human Well-Being and the Natural Environment," OUP Catalogue, Oxford University Press, number 9780199247882, May.
- Meenu Tewari & Poonam Pillai, 2005. "Global Standards and the Dynamics of Environmental Compliance in India's Leather Industry," Oxford Development Studies, Taylor & Francis Journals, vol. 33(2), pages 245-267.
- Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
- James Andreoni & Arik Levinson, 1998.
"The Simple Analytics of the Environmental Kuznets Curve,"
NBER Working Papers
6739, National Bureau of Economic Research, Inc.
- Andreoni, James & Levinson, Arik, 2001. "The simple analytics of the environmental Kuznets curve," Journal of Public Economics, Elsevier, vol. 80(2), pages 269-286, May.
- Eskeland, Gunnar S. & Harrison, Ann E., 2003.
"Moving to greener pastures? Multinationals and the pollution haven hypothesis,"
Journal of Development Economics,
Elsevier, vol. 70(1), pages 1-23, February.
- Eskeland, Gunnar S. & Harrison, Ann E., 1997. "Moving to greener pastures : multinationals and the pollution-haven hypothesis," Policy Research Working Paper Series 1744, The World Bank.
- Gunnar A. Eskeland & Ann E. Harrison, 2002. "Moving to Greener Pastures? Multinationals and the Pollution Haven Hypothesis," NBER Working Papers 8888, National Bureau of Economic Research, Inc.
- Costantini, Valeria & Monni, Salvatore, 2008.
"Environment, human development and economic growth,"
Elsevier, vol. 64(4), pages 867-880, February.
- Valeria Costantini & Salvatore Monni, 2006. "Environment, Human Development and Economic Growth," Working Papers 2006.35, Fondazione Eni Enrico Mattei.
- Valeria Costantini & Salvatore Monni, 2006. "Environment, human development and economic growth," Departmental Working Papers of Economics - University 'Roma Tre' 0062, Department of Economics - University Roma Tre.
- Manmohan Agarwal & Sayan Samanta, 2006. "Structural adjustment, governance, economic growth and social progress," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 15(3), pages 387-401.
- repec:pri:rpdevs:deaton_dreze_poverty_india is not listed on IDEAS
- CARSON, RICHARd T. & JEON, YONGIL & McCUBBIN, DONALD R., 1997. "The relationship between air pollution emissions and income: US Data," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 433-450, November.
- de Bruyn, S. M. & van den Bergh, J. C. J. M. & Opschoor, J. B., 1998. "Economic growth and emissions: reconsidering the empirical basis of environmental Kuznets curves," Ecological Economics, Elsevier, vol. 25(2), pages 161-175, May.
- Stern , David I., 1998. "Progress on the environmental Kuznets curve?," Environment and Development Economics, Cambridge University Press, vol. 3(02), pages 173-196, May.
- Shafik, Nemat & Bandyopadhyay, Sushenjit, 1992. "Economic growth and environmental quality : time series and cross-country evidence," Policy Research Working Paper Series 904, The World Bank.
- Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
- Rajesh Mehta, 2005. "Non-tariff Barriers Affecting IndiaÃ¢â‚¬â„¢s Exports," Trade Working Papers 22116, East Asian Bureau of Economic Research.
- Jha, Raghbendra & Murthy, K. V. Bhanu, 2003.
"An inverse global environmental Kuznets curve,"
Journal of Comparative Economics,
Elsevier, vol. 31(2), pages 352-368, June.
- Ebert, Udo & Welsch, Heinz, 2004. "Meaningful environmental indices: a social choice approach," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 270-283, March.
- Mukherjee, S., 2007. "Groundwater pollution and emerging environmental challenges of industrial effluent irrigation in Mettupalayam Taluk, Tamil Nadu," IWMI Working Papers H042365, International Water Management Institute.
- World Bank, 2006. "India - Strengthening Institutions for Sustainable Growth : Country Environmental Analysis," World Bank Other Operational Studies 19628, The World Bank.
- Gene M. Grossman & Alan B. Krueger, 1995.
"Economic Growth and the Environment,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 110(2), pages 353-377.
- Zhou, P. & Ang, B.W. & Poh, K.L., 2006. "Comparing aggregating methods for constructing the composite environmental index: An objective measure," Ecological Economics, Elsevier, vol. 59(3), pages 305-311, September.
- Sterner, Thomas & Kathuria, Vinish, 2002. "Monitoring and Enforcement: Is Two-Tier Regulation Robust?," Discussion Papers dp-02-17, Resources For the Future.
- Annegrete Bruvoll & Hege Medin, 2003.
"Factors Behind the Environmental Kuznets Curve. A Decomposition of the Changes in Air Pollution,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 24(1), pages 27-48, January.
- Annegrete Bruvoll & Hege Medin, 2000. "Factoring the environmental Kuznets curve Evidence from Norway," Discussion Papers 275, Statistics Norway, Research Department.
- John W. Maxwell & Rafael Reuveny (ed.), 2005. "Trade and Environment," Books, Edward Elgar Publishing, number 3687, May.
- Sacchidananda Mukherjee & Vinish Kathuria, 2006.
"Is Economic Growth Sustainable? Environmental Quality Of Indian States After 1991,"
2006-06, Madras School of Economics,Chennai,India.
- Sacchidananda Mukherjee & Vinish Kathuria, 2006. "Is economic growth sustainable? Environmental quality of Indian States after 1991," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 9(1), pages 38-60.
- repec:ind:iegddp:62 is not listed on IDEAS
- Dutt, Amitava Krishna & Rao, J. Mohan, 1996. "Growth, distribution, and the environment: Sustainable development in India," World Development, Elsevier, vol. 24(2), pages 287-305, February.
- Erik Dietzenbacher & Kakali Mukhopadhyay, 2007. "An Empirical Examination of the Pollution Haven Hypothesis for India: Towards a Green Leontief Paradox?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(4), pages 427-449, April.
When requesting a correction, please mention this item's handle: RePEc:eab:develo:22505. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.