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Constructing Aggregate Environmental-Economic Indicators: A Comparison of 12 OECD Countries

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  • Jeroen C.J.M. van den Bergh
  • D.B. van Veen-Groot

    (Vrije Universiteit Amsterdam)

Abstract

The application of aggregate indicators in environmental-economic research has received littleattention so far. An important reason is the incompleteness of environmental data. This articlepresents a systematic approach to construct indicators of environment and economy on a macrolevel. It includes a distinction into the following categories: the volume of economic activities as anindicator of potential environmental pressure; actual environmental pressure; environmentalquality; and environmental policy. In each category aggregate indicators are calculated for 12OECD countries. Subsequently, the correlation between these indicators is examined. Significantcorrelation is found between the economic activity indicators (or 'potential' environmentalpressure), actual environmental pressure and environmental quality, whereas a very weakcorrelation exists with these indicators and two types of aggregate indicators of environmentalpolicy. Due to some arbitrary choices, which are inevitable, the results are to be judged withcaution. Several suggestions are offered to improve the calculation and comparison of aggregateindicators.

Suggested Citation

  • Jeroen C.J.M. van den Bergh & D.B. van Veen-Groot, 1999. "Constructing Aggregate Environmental-Economic Indicators: A Comparison of 12 OECD Countries," Tinbergen Institute Discussion Papers 99-064/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:19990064
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    References listed on IDEAS

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    1. O.J. Kuik & A.J. Gilbert, 1999. "Indicators of Sustainable Development," Chapters, in: Jeroen C.J.M. van den Bergh (ed.), Handbook of Environmental and Resource Economics, chapter 49, Edward Elgar Publishing.
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    Cited by:

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    3. Rudra P Pradhan, 2011. "An econometric approach between human development and poverty in North Eastern Region of India," Information Management and Business Review, AMH International, vol. 2(1), pages 26-37.
    4. Jérôme Trotignon, 2010. "La restriction des émissions de CO2 pénalise-t-elle les exportations ? Un modèle de gravité avec données de panel et variables muettes régionales," Post-Print halshs-00477244, HAL.
    5. Kumar, Sameer & Putnam, Valora, 2008. "Cradle to cradle: Reverse logistics strategies and opportunities across three industry sectors," International Journal of Production Economics, Elsevier, vol. 115(2), pages 305-315, October.
    6. Trotignon, Jérôme, 2010. "La Restriction des émissions de CO2 pénalise-t-elle les exportations? Un modèle de gravité avec données de panel et variables muettes régionales," L'Actualité Economique, Société Canadienne de Science Economique, vol. 86(1), pages 5-33, mars.
    7. George Halkos & Shunsuke Managi & Kyriaki Tsilika, 2018. "Measuring air polluters’ responsibility in transboundary pollution networks," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(3), pages 619-639, July.
    8. Kortelainen, Mika, 2008. "Dynamic environmental performance analysis: A Malmquist index approach," Ecological Economics, Elsevier, vol. 64(4), pages 701-715, February.
    9. McInnes, R.J. & Everard, M., 2017. "Rapid Assessment of Wetland Ecosystem Services (RAWES): An example from Colombo, Sri Lanka," Ecosystem Services, Elsevier, vol. 25(C), pages 89-105.
    10. 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.

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