Environment, Human Development and Economic Growth

What is it about?

This study investigates the relationships among Environmental Quality (EQ), Human Development (HD) and economic growth for 14 major Indian States. To capture the temporal aspects of EQ, the sample period is divided to Period A (1990-1996) and Period B (1997-2004). For both the subperiods, 63 environmental indicators have been clustered under eight broad environmental groups and an overall index of EQ is created using HDI methodology. Ranking of the States across different environmental criteria (groups) shows that different States possess different strengths and weaknesses in managing various aspects of EQ. The test for the Environmental Kuznets Curve (EKC) hypothesis indicates non-linear relationship between several individual environmental groups and per capita income. The regression results involving individual environment groups and HDI score indicate slanting N-shaped relationship. On the basis of the obtained results, this paper concludes that individual States should adopt environmental management practices based on their local environmental information.

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