Poverty, Environmental Degradation, and Livability: Ranking of Iranian Provinces Using Principal Component Analysis
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Subject Areas : Bi-quarterly Journal of development economics and planning
Nazi Mohammadzadeh Asl 1 * , Soheil Hataminia 2
1 - Assistant professor, Department of Economics, Faculty of Accounting and Economics, Islamic Azad University, Central Tehran Branch, Tehran, Iran
2 - M.A. Student in Economics – Economic Development and Planning, Department of Economics, Faculty of Literature and Humanities, Islamic Azad University, Kermanshah Branch, Kermanshah, Iran
Keywords: Welfare, Poverty, Inequality, Environment, Livability,
Abstract :
The relationship between poverty and the environment is multi-dimensional and complex, necessitating a detailed analysis, particularly at the regional level. This study evaluates and ranks Iran’s 30 provinces based on the poverty-environment nexus. Using Principal Component Analysis (PCA), a composite index comprMiising energy consumption intensity, CO₂ emissions, water stress index, and desertified land area was developed for the year 2021. The first two principal components explained approximately 71% of the total variance. Results indicate a significant negative correlation between poverty and environmental degradation (r = -0.61). In this context, wealthier provinces such as Tehran, Isfahan, and Khuzestan experience the highest environmental degradation, whereas poorer provinces encounter relatively less environmental pressure. The findings suggest that improved economic conditions in Iranian provinces have often been accompanied by reduced livability and heightened environmental degradation. Therefore, policymakers are advised to prioritize enhancing livability by integrating sustainable water resource management and desertification control into poverty alleviation strategies.
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