What is it about?
The Environmental Performance Index (EPI) is a wide ranging dimension of environmental parameters, which need to be assessed with different socioeconomic indicators with a view to inspect environmental sustainability of a growing economy like Bangladesh. The endeavour is given in this study to examine the short run and long run relationship between CO2 emission, Per Capita Income, HDI and EPI. Besides, the influence of selected variables on EPI has been ascertained by systematic econometric exercise. It is appeared in the estimation that, there is a cointegrating relationship between CO2 emission, Per Capita Income, HDI and EPI of Bangladesh. A long term associationship emerged among the cointegrated variables in further statistical sophistication and found causality is running form the explanatory variables to EPI; meaning that Per Capita Income, Human Development Index and CO2 emission has influence on Environmental Performance Index in the long run. Transitory effect analysis revealed no short run relationship between HDI, CO2 emission and EPI. Furthermore, multiple regression model signifies the negative association between EPI and Per Capita Income, marginal relationship between CO2 emission and EPI, and considerable impact on EPI by Human Development Index.
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Why is it important?
Examine the Environmental Performance Index along with the influencing variables are obligatory for the environmental planning and management for all types of state and particularly for the developing nations as well. Thus, the study intends to identify the causal relationship and impact of CO2 emission, per capita income and HDI on the Environmental Performance Index of Bangladesh, which is categorised as one of the most climate vulnerable and environmentally unsustainable country of the world. The study also inspects the collision of CO2 emission, Per Capita Income, and HDI on Environmental Performance Index of Bangladesh and provides credible and justifiable information for the environmental health centric economic planning, development and policy making. The specific objectives of this study are: To examine the short run and long run causality between CO2 emission, Per Capita Income, HDI and EPI of Bangladesh To assess the impact of CO2 emission, Per Capita Income, HDI on EPI To generate scientific knowledge on the long term interaction of environmental and socio-economic indicators of Bangladesh, and To provide rational support to the eco-friendly policy formulation in order to achieve green growth, sustainable and resilient building.
Perspectives
It is found in the study that, CO2 emission, Human Development Index, Per Capita Income, and Environmental Performance Index all have co-relationship and they move together in the long run. Short run shock of influencing variables such as CO2 emission, HDI, Per Capita Income may not affect the EPI but can significantly affect the EPI in the long run. Short run policy for the improvement of environmental performance through improving HDI and controlling CO2 emission may not much effective for the country like Bangladesh. In this regard an integrated and perspective policy can be very effective to perk up the environmental performance in Bangladesh. Education has a greater role for the awareness building and environmental shield. Thus, spreading the environmental education can be an indispensable tool in this regard. Necessary steps are much essential to protect the environment and its resources. It is suggested to come up with combined effort of government, inter-government, and transnational institutions to sustain and improve the environmental performance and economic prosperity of Bangladesh.
Mr Md. Arfanuzzaman
Bangladesh Centre for Advanced Studies
Read the Original
This page is a summary of: Impact of CO2 emission, per capita income and HDI on Environmental Performance Index: empirical evidence from Bangladesh, International Journal of Green Economics, January 2016, Inderscience Publishers,
DOI: 10.1504/ijge.2016.081900.
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