The Sustainable Development

Author

Department of Economics, University of Mohaghegh Ardabili, Ardabil, Iran

Abstract

Abstract
This research has aimed to examine the feedback effects between economic growth and environmental degradation through health that is one of human capital elements and also the consequences of such these relationships on economic convergence process during the period 1990-2013 for 60 developing countries in framework of simultaneous equations model by using unbalanced panel data analysis. This requires analyzing the interrelationships between economic growth, health, and environmental degradation. The results show the positive direct feedback effects between economic growth and health status, also positive indirect and reverse direct feedback effects between economic growth and environmental degradation. Although economic growth increases environmental degradation, sustaining the convergence process of developing countries and reaching the environmental Kuznets curve to turning point of CO2 emission represent stronger indirect feedback effects between economic growth and environmental degradation than direct feedback effects.

Keywords


References
Bovenberg, A. L., & Smulder, S. (1995). Environmental Quality Pollution-Augmenting Technological Change in a Two Sector Endogenous Growth Model. Journal of Public Economics, 1, 369-391.
Drabo, A. (2010). Interrelationships between Health, Environment Quality and Economic Activity: What Consequences for Economic Convergence? International Journal for Quality Research, 1, 9-24.
Fayissa, B., & Gutema, P. (2005). Estimating a Health Production Function for Sub-Saharan Africa (SSA). Applied Economics, 37, 155-164.
Gangadharan, L., & Valenzuela, M. R. (2001). Interrelationships between Income, Health and the Environment: Extending the Environmental Kuznets Curve Hypothesis. Ecological Economics, 36, 513-531.
Grossman, G. M., & Krueger, A. B. (1991). Environmental Impacts of the North American Free Trade Agreement. NBER Working Paper, 3914, Retrieved from http://core.ac.uk/download/pdf/6853464.pdf.
Islam, N. (1995). Growth Empirics: A Panel Data Approach. Quarterly Journal of Economics, 110, 1127-1170.
Knowles, S., & Owen, D. (1995). Health Capital and Cross-Country Variation in Income Per Capita in the Mankiw–Romer–Weil Model. Economics Letters, 48, 99-106.
Mankiw, N.G., Romer, D., & Weil, D.N. (1992). A Contribution to the Empirics of Economic Growth. The Quarterly Journal of Economics, 107, 407-437.
 
 
McDonald, S., & Roberts, J. (2004). AIDS and Economic Growth: A Human Capital Approach. Sheffield Economic Research Paper Series, 2004008, 1-26.
Solow, R. M. (1956). A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics, 70, 65-94.
Webber, D. J. (2002). Policies to Stimulate Growth: Should We Invest in Health or Education. Applied Economics, 34, 1633-1643.
Wooldridge, J. M. (2002). Econometric Analysis of Cross-Section and Panel Data. Cambridge, MA: MIT Press.
World Bank. (2015). World Bank Group Official Web Page. Retrieved from https://www.worldbank.org.