Environmental Efficiency and Its Relationship with Income in Islamic Countries (D8)

Subject Areas : Environmental Economics

Mahsa  Evaz Sahra ¹ (M.A, Department of Agricultural Economics, University of Zabol, Zabol, Iran)
Saman  Ziaee ² (Associate Prof, Department of Agricultural Economics, University of Zabol, Zabol, Iran * (Corresponding Author))
Mahmood  Ahmadpour Borazjani ³ (Associate Prof, Department of Agricultural Economics, University of Zabol, Zabol, Iran)
Alireza  Sargazi ⁴ (Member of Faculty, Department of Agricultural Economics, University of Zabol, Zabol, Iran)

Received: 2016-11-30 Accepted : 2018-10-03 Published : 2020-05-21

Keywords: Environmental productivity, Malmquist index, DEA, Islamic Countries Panel D,

Abstract :

Background and Objective: Economic growth is the main goal of many economic policies of governments. However, rapid economic growth often causes serious damage to the environment (due to the increasing use of natural resources). Hence, there is a potential contradiction between economic growth policies and the state of the environment, so gradually the issue of conflict between economic growth and environmental quality became one of the topics of discussion in the field of environmental economics. Method: In the field of environmental economics in this study, using data envelopment analysis method (DEA) the environmental efficiency was calculated for developing Islamic countries (D8) during the period of 1980-2014. Then, using the panel data method, the relationship between environmental efficiency and per capita income was investigated. Information about these countries was collected from various economic sites such as the Data world bank, Economy watch and ….  Findings: The results show that the average of environmental efficiency of the D8 countries increased at a rate of 1.02. This increases the efficiency of technology to increase efficiency at the rate of 1.021 and 0.998 of technical efficiency. Technical efficiency is because of the increase in management efficiency (1) and scale efficiency (0.998).  Discussion and Conclusion The growth of environmental efficiency in Iran is 1.016, which is in the fifth place after Malaysia (1.053), Indonesia (1.042), Nigeria (1.036) and Turkey (1.025). According to the results, there is a direct relationship between per capita income and environmental pollution, so Kuznets law is not established in these countries.

References:

1. Asafu Ajaei, J. (2002). Environmental economics for non-economists, ranslated by Siavash Dehghanian and Zakaria Farajzadeh. Ferdowsi University Press, Mashhad. (In Persian)


2. Brazdik, F. (2006). Non-parametric analysis of technical efficiency, factors affecting efficiency of west Java rice farms, working paper. 286-292.


3. Candmir, M. and Koyubenbe, N. (2006). Efficiency analysis of dairy farms in the province of Izmir (Turkey), Journal of Applied Animal Research. 1: 61-64.


4. Dlaini, S., Rugambisa, J. I., Masuku, M. B. and Belete, A. (2010). Technical efficiency of the small scale sugarcane farmers in Swaziland: A case study of Vuvulane and Big bend farmers. African J of Agricultural Research. 5: 935-940.


5. Emadzadeh, M., Bastani Far, A. and Ebrahami, S. (2007), Investigation of simultaneous prediction of economic-environmental effects of projects (Case study of Isfahan Research Campus). Journal of Economic Review (Some Equity). 4 (1): 74-51 . (In Persian)


6. Halkos, G. E. and Tzeremes, N. G. (2009). Exploring the existence of Kuznets curve in countries' environmental efficiency using DEA window analysis.  Ecological Economics.  68(7): 2168- 2176


7. Huq, A., ASM, k. and Arshad, M. (2010). Technical efficiency of chili production. American journal of applied science. 7: 185- 190.


8. Khanna, N. and Kumar, H. (2009). The Income Elasticity of Non-Point Source Air Pollutants: Revisiting the Environmental Kuznets Curve. Economics Letters. 77:  387–392.


9. Malmquist, S. (1953). Index numbers and indifference surfaces. Trabajos de Estatistica, 4: 209-242.


10. Managi, S. and Jena, R. (2008). Environmental productivity and Kuznets Cruve in India. Ecological Economics. 65(2): 432-440.


11. Naser Zadeh, S. (2010). Evaluation of Biodegradability of Iranian Thermal Power Plants by Data Envelopment Analysis. Master's Thesis, Allameh Tabataba'i University. (In Persian)


12. Pejouyan, J., and Moradhasel , N, (2007). The Effect of Economic Growth on Air Pollution. Iranian Journal of Economic Research. 4 (7): 160-141. (In Persian)


13. Rafei, M. (2010). Investigating the relationship between economic growth and environmental performance in Iran and several selected countries. Master's Thesis, Allameh Tabataba'i University. (In Persian)