Assessment of the Influence of the Extraction of Energy Resources on the Environment

Abstract

In the paper a proposed model for evaluating the influence of energy resource extraction activities on indicators for assessing the state of the environment is considered. The model was constructed under several different assumptions. The first suggests that there exists an environment in which different processes are taking place, e.g. forests and fresh water stocks are changing along with temperature. These processes are to be assessed by endogenous variables. Moreover, each process has its own prehistory that is also being affected by each endogenous variable. The second assumption states that all the processes taking place in the environment are interrelated. The third assumption supposes that the environment is affected by external factors, primarily human activity. In the current paper the human activity of energy resource extraction was considered. The model comprised four econometric equations, each of which was considered to be an ADL model. The model represented the coefficient calculation methodology with time series stationarity and multicollinearity verification. Identification of endogenous variable lags correlated strongly with the current period variable value and verification of the significance of autocorrelation coefficients. The findings of the study allowed conclusions to be drawn, which offered directions for further investigation.