Environmental Economics

Journal Information
ISSN / EISSN : 1998-6041 / 1998-605X
Current Publisher: LLC CPC Business Perspectives (10.21511)
Total articles ≅ 148
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, Roukiya Hassan
Environmental Economics, Volume 12, pp 32-38; doi:10.21511/ee.12(1).2021.03

In a world increasingly subject to climate change, protected areas are of particular importance for conserving biodiversity and human livelihoods. Therefore, they play an important role in helping many species, populations, and countries adapt to climate change. This paper analyzes the effects of economic growth on the evolution of the protected areas. The study examines this relation using a sample of nine countries of the Congo Basin from 1990 to 2010. The econometric results show that an increase in the Gross Domestic Product (GDP) per capita has a positive impact on the extent of the protected area in this region regardless of the model chosen. Therefore, economic growth is a means used for the preservation of biodiversity in the Congo Basin. Moreover, the population density is negative and statistically significant. This shows that the protected areas of the Congo Basin are particularly threatened in densely populated areas.
Environmental Economics, Volume 12, pp 1-13; doi:10.21511/ee.12(1).2021.01

This study explores the symmetric and asymmetric impact of real GDP per capita, FDI inflow, and crude oil price on CO2 emission in Tunisia for the 1972–2016 period. Using the cointegration tests, namely ARDL and NARDL bound test, the results show that the variables are associated in a long run relationship. Long run estimates from both approach confirms the validity of ECK hypothesis for Tunisia. Symmetric analysis reveals that economic growth and the price of crude oil adversely affect the environment, in contrast to FDI inflows that reduce CO2 emissions in the long run. Whereas the asymmetric analysis show that increase in crude oil price harm the environment and decrease in crude oil price have positive repercussions on the environment. The causality analysis suggests that a bilateral link exists between economic growth and carbon emissions and a one-way causality ranges from FDI inflows and crude oil prices to carbon emissions. Thus, some policy recommendations have been formulated to help Tunisia reduce carbon emissions and support economic development.
Mathieu Juliot Mpabe Bodjongo, Guy Christol Ekane Ekome, Fanny Kabwe Omoyi Epse Essomme
Environmental Economics, Volume 12, pp 39-52; doi:10.21511/ee.12(1).2021.04

Permanent access to energy is an essential pillar of economic development. However, there is a growing evidence that contemporary energy systems are not able to provide energy to the entire population on a sustainable basis and at affordable prices. In the face of these challenges, renewable energy can play an important role, especially in rural areas where access to centralized electricity grids is difficult. This paper aims to examine the access gaps of enterprises to renewable energy between rural and urban areas in Cameroon. The analysis is based on a sample of 209,482 enterprises, taken from the Second General Census of Enterprises in Cameroon (RGE-2) carried out by the National Institute of Statistics (NIS). The econometric estimations, obtained using the Blinder-Oaxaca decomposition, reveal that access rate to renewable energy for firms in rural areas is lower than that of firms located in urban areas. An increase in the level of education of the promoter of an enterprise, obtaining credit from banks, microfinance and savings, and the formalization of enterprises in rural areas can also contribute to reducing the gap in rural areas in terms of accessing to renewable energy. The discrimination suffered by rural enterprises related to the gender of entrepreneurs, the sector of activity, the business environment and professional experience tend to increase this gap. To reduce this gap, there is a need to promote access to finance for rural enterprises and their migration from the informal to the formal sector.
Environmental Economics, Volume 12, pp 53-63; doi:10.21511/ee.12(1).2021.05

This study aims to analyze the direct and indirect impact of future climate changes on agricultural production and macroeconomic aggregates. A dynamic general equilibrium model of the Tunisian economy has been developed, which takes into account the effects of future climate shocks from 2020 to 2050 to assess the impact of future climate change on agricultural production and macroeconomic aggregates. The model is used to simulate various scenarios. The results of the climate shock simulations clearly show that long-term citrus fruits production is showing remarkable declines in the most citrus-producing governorates following a significant drop in water level in dams and level of groundwater table. In turn, cereals are the plants most affected by the long-term reduction in rainfall. As for the olive production, it would show a decline reaching –1.263% between 2020 and 2024 in the level of its production following reduction in rainfall. From a macro-economic point of view, climate change will result in the short- and long-term in a deterioration of certain quantities, notably household consumption, entrepreneurial investment, and the unemployment rate, which decreases by –0.139% between 2031 and 2040. These results underline the need for a long-term agricultural policy to reduce or limit the economic and social consequences of climate change and support economic development.
Yao Silvère Konan, Kodjo Aklobessi
Environmental Economics, Volume 12, pp 64-75; doi:10.21511/ee.12(1).2021.06

This paper analyzes the revenue-pollution relationship by revisiting the Environmental Kuznets Curve (EKC) hypothesis for West African countries over the period of 1980–2014. The study approximates the income measurement by GDP per capita and uses carbon dioxide (CO2), nitrogen oxide (NO2), and methane emissions as various environmental quality measures. The paper uses parametric and non-parametric estimation techniques to test the EKC hypothesis. The results support the existence of the U-inverted relationship between income and methane emission, on one hand, and between income and nitrogen dioxide emission on the other. The estimates also show a mixed result for the U-inverted hypothesis between income and carbon dioxide emissions. Thus, the verification of the curve depends on the estimation techniques and the measurement of the pollutant used. The obtained results led to the conclusion that the EKC hypothesis is validated for West African countries.
Environmental Economics, Volume 12, pp 14-31; doi:10.21511/ee.12(1).2021.02

The design, implementation, and evaluation of energy policies in combating climate change are becoming increasingly evident to strengthen economic growth driven by the agricultural sector in most developing countries. The study analyzes the direct and indirect effects of renewable energy consumption (REC) on agriculture value-added (AgVA), CO2 emissions, and trade openness in the short- and long-run in the West African countries. The second-generation panel unit root tests, the panel cointegration methods, and Panel Vector Error Correction Model are used with World Bank data from 1990 to 2015. A panel Granger causality test was also used to determine the direction of causality between variables. Findings show a unidirectional relationship between AgVA, CO2 emissions, and REC; between REC, gross fixe capital formation (GFCF) and trade openness. Moreover, the bidirectional hypothesis is verified between agricultural development and trade openness. However, the null hypothesis is found between AgVA and GFCF, on the one hand, and GFCF and CO2 emissions, on the other hand. These results suggest that fostering renewable energy policy and revisiting trade policy toward reducing environmental pollution will enable agricultural development and boost the regional economy. AcknowledgmentThe author wants to thank Dr. Moukpè GNINIGUE for his technical supports and Prof. Jean Marcelin Bosson BROU from the University of Houphouet Boigny (Cote d’Ivoire), Dr. Odzadifo K. WONYRA and Dr. Hodabalo BATAKA from the University of Kara, Dr. Koffi Massesso ADJI from the West African Sciences Services Centre on Climate Change and Land Use (University of Cheikh Anta Diop, Dakar) and Essotanam MAMBA from the University of Lomé for their constructive comments on the earlier version of this manuscripts. Finally, the author is grateful to the anonymous reviewers and Editor-in-Chief of Environmental Economics, whose comments have improved this paper. However, the opinions expressed in this paper are solely those of the author.
Ali Maalej, Alexandre Cabagnols
Environmental Economics, Volume 11, pp 133-150; doi:10.21511/ee.11(1).2020.12

This study investigates the relationship between economic growth, final consumption, investment, energy use and CO² emissions in two groups of Middle East and North Africa (MENA) countries: Oil Poor Countries (OPC) and Oil Rich Countries (ORC). It is assumed and verified that the structural relationship between GDP growth, energy use and CO² emissions is different in these two groups of countries. FGLS panel estimations were carried out over the period 1974–2014. In ORC, no significant relationships are observed between energy use and GDP, whereas CO² emissions and GDP are positively linked. In OPC, there are opposite connections: a positive link between GDP and energy use, whereas the impact of CO² emissions on GDP tends to be negative. In both groups of countries, a positive and bi-directional link is observed between energy use and CO² emissions. The strength of this link is twice bigger in OPC than in ORC. This indicates that CO2 reduction policies conducted through energy use control (quantitative and qualitative) will have higher effect in OPC than in ORC. This also shows that the relationships between economic growth, energy use and CO² emissions differ noticeably and structurally between OPC and ORC. These results provide new insights into the opportunities and threats faced by CO2 reduction policies in OPCs and ORCs.
Walid Chatti
Environmental Economics, Volume 11, pp 124-132; doi:10.21511/ee.11(1).2020.11

Despite progress in reducing air pollutants in several countries, freight transport continues to have undesirable effects on environmental quality, human health, and the economy. Road freight transport, in particular, is associated with various negative externalities, including environmental and health damages, and the overexploitation of non-renewable natural resources. This paper investigates how ICTs interact with road freight transport to affect environmental quality regarding reducing CO2 emissions. The empirical strategy is focused on the yearly dataset from 2002 to 2014 in 43 countries. Using the two-step GMM techniques, the findings suggest that ICTs can decrease road freight transport’s negative impacts on environmental sustainability. Besides, the interactions of mobile phone and fixed telephone technologies with road freight transport are more efficient in reducing pollution than using internet networks. This paper underlines the importance of using ICTs to dampen road freight transport’s negative effects on environmental sustainability.
, , Kjell Bjørn Minde
Environmental Economics, Volume 11, pp 110-123; doi:10.21511/ee.11(1).2020.10

Scholars warn that wealth leads to unsustainable environmental development. However, over the last decades, studies have shown an increase in environmental degradation at the initial stage of economic growth, and then a decline when economic growth reaches a certain level. This first acceleration and then deceleration create an inverted U-shaped curve between pollution and economic growth, called the environmental Kuznets curve (EKC). Environmental degradation can be measured by different factors. This paper deals with two of them, i.e. energy consumption and energy intensity (EI). The latter is measured as the ratio between energy consumption and GDP. The relationship of energy consumption and intensity to economic growth can serve as a tool for examining whether an EKC exists. The paper presents continuous series of energy consumption energy intensity and gross domestic product for the Norwegian mainland economy 1835–2019. The series are used to examine the possible existence of relative and absolute environmental Kuznets curves (EKC). Time series are established using available data and annual figures for 1835–2019, which are presented for the first time. They depict a development that, first, reflects an almost constant downward trend in EI, and, second, the existence of EKCs. The paper also proposes a polynomial regression model to discuss the relationship between environmental degradation as measured by energy consumption and intensity on the one hand, and economic growth on the other. It is concluded that there are both relative and absolute EKC-relations between environmental degradation and economic growth, with 1975 as relative and 2002 as absolute turning point.
Victoriia Dergachova, Serhii Smerichevskyi, , Svitlana Smerichevska
Environmental Economics, Volume 11, pp 96-109; doi:10.21511/ee.11(1).2020.09

Utilization of modern technologies in food production causes several negative consequences having a long-term impact on public health due to the consumption of food containing components of inorganic origin. This circumstance requires the formation and development of the market of organic food in Ukraine. The paper aims to substantiate the possibility of using economic and organizational tools to rationalize environmentally friendly food consumption and eliminate their negative consequences for the region’s population. The study’s basis is the classical provisions of modern economic theory, environmental economics, and the concept of socio-ethical marketing. Based on the analysis of official statistics, the parameters and opportunities for the growth of the organic food products market in Ukraine by region are determined. The conformity of the product offer of ecologically clean products to different consumer segments in the region is revealed according to the criteria that characterize the groups of goods according to the degree of their ecological purity compared to the price parameter, frequency of purchase, and place of purchase. The priorities for the gradual expansion of the organic food market in the region have been determined with an emphasis on its expansion by attracting new consumer segments. The need for additional organizational measures in the region, aimed at both non-commercial and commercial promotion of healthy lifestyles and proper nutrition, is argued, which increases consumers’ involvement in these processes and increases awareness and interest in regular consumption of organic food.
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