2013

An Assessment of Environmental Sustainable Index and Different SocioEconomic and Environmental arameters

Author Arfan !""aman

arfan@asia.com

MEcon in Env. Economics Dhaka School of Economics

9/24/2013

1. Introduction Environmental Sustainabilit# Index $ESI% is t&e 'rominent statement of environmental 'erformance (&ic& s#mboli"es t&e com'etence of a countr# to 'rotect its environment form different &uman and environmental vulnerabilit# as (ell as emer)in) c&allen)es* As t&e econom# is )ro(in) t&e extraction of environmental resources and intensit# of 'ollution are also increasin)* In t&is context t&e ESI 'la#s a momentous role b# furnis&in) t&e 'resent state of environment+ and environmental )overnance in different countries* So t&e condition of environment can be understood from ESI in t&e current sta)e of economic escalation and develo'ment* In t&is stud# t&e ESI of some selected countries &as been scrutini"ed (it& t&e &el' of diverse socio-economic and environmental 'arameters* ,ere it &as been examined (&et&er t&e 'erformance of different 'arameters is com'arable (it& ESI and to (&at extend t&e ESI re'resents state of t&e environment of selected countries alon) (it& t&eir contem'orar# sta)e of economic 'ro)ress* 2. Objective of the Study -&e broad ob.ective of t&e stud# is to ex'lore t&e relations&i' bet(een ESI and )iven socio-economic and environmental 'arameters* -&e s'ecific ob.ectives are under mentioned* i* ii* -o anal#"e t&e 'resent status of )iven and selected 'arameters i*e* /D + /,/ Emission+ Ecolo)ical 0oot'rint+ ,DI and overt# level com'ared to ESI* -o s1etc& t&e trend and 'attern of different indicators (it& ESI*

3. Methodology In order to anal#"e t&e relations&i' of different 'arameters (it& ESI+ ten countries &ave been selected from t&e list of 2D3s as 'er &i)&er socio economic status* Since 2D3s are &ardl# res'onsible of )lobal carbon foot'rint+ it is note(ort&# to evaluate t&eir socio-economic and environmental 'arameters (it& ESI* It is remar1able t&at t&e combined /D of all 2D3s is 4503 billion (it& a 'o'ulation of 4656 million and t&eir 'er ca'ita /7I is 4583* ,ere+ six countries i*e* 9an)lades&+ Sene)al+ :emen+ 3ambodia+ ;#anmar+ 7e'al are 'ic1ed from Asia and rest of t&e four countries named <ambia Sudan+ -an"ania and Et&io'ia are c&osen form Africa re)ion* Since+ t&e ESI doesn=t 'rovide t&e time series data t&e stud# is limited to >ualitative anal#sis* ,o(ever+ t&e com'arative anal#sis based on sin)le #ear and crossection t#'e data is ex'ected to ex'lore some concludable outcomes* 4. Data Source

7ecessar# data for t&is stud# &as been collected from secondar# sources* Since t&e stud# is macroeconomic 'ers'ective most of t&e data &ave been searc&ed from national surve#+ 9ureau of Statistics+ /ovt* 'ublications+ and ot&er domestic and international or)ani"ation t&ose (&o are (or1in) on )ro(t&+ develo'ment+ nature and environment related issues* -&e re>uired data is collected from t&e 'ublis&ed documents of ?orld 9an1+ !7D + Index ;undi+ :ale 3enter for Environmental 2a( and olic#+ ?orld Economic 0orum+ and /lobal 0oot'rint 7et(or1 containin) information on /D + /,/ emission+ ;D/+ Ecolo)ical 0oot'rint+ overt# and ,DI* Data for ESI is 'ic1ed from 2008 ESI and data of ot&ers 'arameters is collected on t&e basis on latest #ear available* Since t&e data for all t#'es of /reen ,ouse /ases is not available for t&e selected countries onl# 3@ 2 emission is ta1en for anal#sis* !. "e ult and Di cu ion

Environmental Sustainable Index is t&e most reco)ni"ed and (ell establis&ed researc& (or1 on environmental sustainabilit# (&ic& 'rovides 'erformance testimon# of environmental s#stems+ environmental stresses+ &uman vulnerabilit# to environmental stresses+ social ca'acit# to res'ond to environmental c&an)es and )lobal ste(ards&i' for furt&er assessment+ environmental re)ulation and 'olic# ma1in)* -&e relations&i' bet(een ESI and /ross Domestic roduct $/D %+ ;illennium Develo'ment /oal $;D/%+ /reen ,ouse /as $/,/% emission+ Ecolo)ical 0oot'rint+ ,uman Develo'ment Index $,DI% and 'overt# level is assessed &ere* At t&is .uncture different cate)or# &as been made for t&e com'arative anal#sis* #able$ Different Socio%&cono'ic( &nviron'ental )ara'eter Selected *D+ and &SI of

3ountr# 9an)lade s& Sene)al :emen 3ambodi a ;#anmar 7e'al Sudan <ambia -an"ania Et&io'ia

ESI Score 44*1 81*1 35*3 80*1 82*9 45*5 38*9 81*1 80*3 35*3

/D 9illion$ 4% 11E 14 38*4 14*2 88*3 19*4 86*5 20*E 26*2 43*1

;D/
Absolute ro)ress ;edium ro)ress 2o( ro)ress Absolute ro)ress ;edium ro)ress Absolute ro)ress ;edium ro)ress 2o( ro)ress 2o( ro)ress Absolute ro)ress

Ecolo)ic al 0oot'rint 0*E2 1*09 0*94 1*03 1*59 3*8E 1*53 0*91 1*16 1*1

/,/ Emissio nB 0*3 0*4 1*1 0*3 0*2 0*1 0*3 0*2 0*2 0*1

,DI

overt# DateBB 26*8 84 48*2 31 2E*E 28*2 4E*8 E4 3E 29*2

0*818 0*45 0*486 0*843 0*496 0*4E3 0*414 0*446 0*45E 0*39E

7oteA B /reen ,ouse /as emission s'ecifies 3@2 metric tons 'er ca'ita B B ercenta)e of o'ulation belo( 'overt# lineC 42 !.1 "elation hi, -et.een &SI and /D)

/ross Domestic roduct $/D % is t&e 'rominent indicator of an# countr# to re'resent its )ro(t& and 'ros'erit#* If /D )ro(t& increases it is assumed t&at t&e extraction of environmental resources is also increases (it&* In toda#=s (orld+ most of t&e cases economic )ro(t& ta1es 'lace at t&e cost of environment* -&us+ t&ere is a closest correlation bet(een /D and environment* It seems in t&e table t&at alt&ou)& 9an)lades& ran1ed seven in ESI score its /D is &i)&est amon) t&e selected 2D3s* It is also notable+ in (orld=s ESI )radin) 9an)lades& 'laced 115 but in terms of /D it )ain 89 t& 'osition amon) t&e economies* Sudan is t&e lo(est ESI scorer but in terms of /D it is t&e second lar)est countr# in t&e list* It can be stated t&at Sudan doesn=t care about its environmental &ealt& and its econom# is )ro(in) at t&e cost of its environment and resources* Exce't ;#anmar t&e to' six ESI scorer countries /D is counted less t&an 304 billion* ;#anmar ac&ieved 'ea1 'lace in ESI score amon) t&e countries but it )ained t&ird 'osition b# t&e si"e of /D * !.2 "elation hi, -et.een &SI and MD/

7evert&eless to sa#+ t&e si)nificance of ;D/ is exce'tionall# &i)& for an# develo'in) countries* Since ;D/ si)nifies t&e overall develo'ment of a countr#+ it is

(ise to assess t&e relations&i' bet(een ;D/ 'ro)ress and ESI* Alt&ou)& t&e environmental issues also )ot some im'ortance on current ;D/ )uidelines+ (&en (e t&in1 about sustainabilit# ESI comes &ere* It seems t&at amon) t&e selected 2D3s onl# 9an)lades&+ 3ambodia+ 7e'al and Et&io'ia is in absolute 'ro)ress on ;D/ and alread# t&e# ac&ieve some of )oals before t&e cut-off date* ESI score of t&ose countries is more t&an 48 exce't Et&io'ia* -&e ;D/ 'ro)ress and ESI score seems lo(est simultaneousl# for :emen* <ambia and -an"ania+ rest of t&e lo( 'ro)ress countries in t&e ;D/ list+ seems t&eir ESI score is substantiall# &i)&er* !.3 "elation hi, -et.een &SI and /0/ &'i ion

-&ere is a inverse relations&i' exist bet(een ESI and /,/* If /,/ emission increase t&e ESI score (ill be ne)ativel# im'acted and vice versa* It can be seen t&at+ :emen ran1ed to' in 'er ca'ita /,/ emission and its ESI score is also least com'ared to ot&er 2D3s* In addition to t&is t&e countries t&ose (&o &ave ESI score is e>ual and above 80 are t&e sli)&test /,/ emitter* It is also notable t&at t&e countries t&ose ESI score is less t&an 80 are also less /,/ emitter* -&ese findin)s also verif# t&e statement t&at+ 2D3s and develo'in) countries are less res'onsible for )lobal /,/ release and environmental 'ollution* -&e avera)e 'er ca'ita 3@2 emission for 2D3s is 0*3+ for Sout& Asia 1*4+ and for (orld 4*5* 9esides Euro'ean !nion+ Sub-Sa&aran Africa+ @E3D members and Euro area is res'ectivel# disc&ar)e 3@2 5*2+ 0*9+ 10*0+ and 5*4 metric tons 'er ca'ita* It is a''eared t&at 2D3s are 'roducin) least /,/ com'ared to an# different countr# )rou' and rest of t&e (orld* !.4 "elation hi, -et.een &SI and &cological 1oot,rint

2iterall#+ &o( muc& bios'&ere (e re>uire to 'roduce t&e )oods and services (e consume and assimilate t&e (aste )enerated from t&e consum'tion is reco)ni"ed as ecolo)ical foot'rint* It also si)nifies &o( muc& im'act is fallin) on t&e biolo)ical 'roductive areas of eart& to meet our consum'tion and (aste absor'tion* 9ased on t&e information of /lobal 0oot rint 7et(or1 it can be stated t&at+ 9an)lades&+ Et&io'ia is usin) more biolo)ical resources t&an its bio ca'acit#* Ecolo)ical foot'rint and bio ca'acit# is nearl# same for Sene)al+ :emen+ 3ambodia and -an"inia* 9esides+ Sudan+ <ambia ;#anmar is in )reatl# sustainable state* -&ere foot'rint is found muc& lesser t&an t&eir bio ca'acit#* -&e ecolo)ical foot'rint is muc& &i)&er for 7e'al in contrast to ot&er 2D3s (&ere t&e ESI index seems moderate for it* It deserves s'ecial mention t&at t&e ecolo)ical foot 'rint for remainin) countries is above one onl# exce'tion is found for 9an)lades& (&ic& food 'rint is counted sli)&tl# &alf* !.! "elation hi, -et.een &SI and 0DI

,uman develo'ment index is not directl# correlated (it& ESI* 0rom t&e above table it can be seen onl# 9an)lades& &as ,DI more t&an 0*80 and it is on "enit& com'ared to t&at of ot&er selected 2D3s* Et&io'ia &as least ,DI (&ic& is counted 0*39E* @t&er 2D3s ,DI is relativel# same on t&e list* It is flic1ered t&at 9an)lades&

ran1ed sevent& based on ESI score but its ,DI is &i)&est amon) t&e 2D3s* ;#anmar+ t&e to' ESI scorer &as ,DI nearl# 9an)lades&* 9esides+ t&e to' five ESI scorers Sene)al+ 3ambodia+ ;#anmar+ -an"inia+ <ambia &as ,DI more t&an 0*4E* !.2 "elation hi, -et.een &SI and )overty "ate

overt# is exceedin)l# crucial for 2east Develo'ed 3ountries* -&e severit# of 'overt# seems tremendous for t&ose countries* A lar)e 'art of (orlds 'oorest 'eo'le are livin) in 2D3s* It is ver# si)nificant to anal#"e t&at+ (&at is t&e 'resent state of environment of t&ose 'oorest nations and &o( t&e# 'rotect environment (it& &i)& rut&lessness of 'overt#* It seems four countries &as 'overt# rate more t&an 48F and overt# level is found less t&an 30F for four countries also amon) t&e ten* Dest of t&e t(o countries 'overt# rate is res'ectivel# 31F and 3EF* 7e'al &as t&e least 'overt# rate amon) t&e selected 2D3s and its ESI score is seems com'etitive (it& t&at of ot&ers* ;oreover+ ;#anmar &as t&e second lo(est 'overt# rate but its ESI )ain is u''ermost amon) t&e countries* <ambia and Sene)al &as t&e &i)&est 'overt# rate amon) t&e listed countries and t&eir ESI score is also substantiall# u''er (&ic& is second &i)&est ESI ac&iever* 2. Su''ary and +onclu ion In t&is stud# com'arative anal#sis of selected 'arameters of diverse economies &as been made (it& Environmental Sustainabilit# Index* Alt&ou)& ESI is treated as a milestone of environmental sustainabilit# of different countries around t&e (orld it &as some limitations also* Severit# of 'ollution+ level of )reen &ouse )as emission+ climate c&an)e+ state of environmental de)radation 'er countr# is not fairl# 'rioriti"ed* It seems t&at t&e stud# is in favor of ca'italist countries t&ose (&o are &i)&l# res'onsible for /,/ emission or climate c&an)e* ,o(ever+ still ESI is a fantastic re'ort t&at 'rovides 'recise information (&ere t&e indicators of environmental s#stem and stress+ &uman vulnerabilit#+ social and institutional ca'acit# and )lobal ste(ards&i' can be seen at a )lance* -&e sco'e of ESI is un>uestionabl# immense* Since t&e economic )ro(t& and 'ros'erit# are &i)&l# de'ends (it& environment and its resources t&ere is a co-relation bet(een environmental and economic indicators* It is a''eared in t&e stud# t&at+ t&e countries (it& &i)& ESI score is a less /,/ emitter* :emen+ t&e least ESI scorer is a c&ief /,/ 'roducer amon) t&e listed countries* In case of 'overt# it seems t&at countr# t&ose (&o &ave soarin) 'overt# t&eir ESI score is found bot& &i)& and lo(* ,ere it can be stated t&at 'overt# is not &i)&l# related (it& ESI+ it de'ends on t&e stoc1+ accessibilit# and e>ual resource distribution of a countr#* ;oreover+ it is flic1ered t&at t&e &i)&er ESI )ainer &as less /D and countr# (it& less ESI score &as &i)&er /D * It is also noted t&at t&e countr# (it& outstandin) ,DI amon) t&e countries fall into t&e &i)&er ESI scorer )rou'*

3. "eference4 5

;D/ ro)ress De'ort+ 2013+ !7D 9an)lades& Economic Devie(+ 2013+ ;inistr# of 0inance+ /o9 ESI+ 2008+ :ale 3enter for Environmental 2a( and olic# ,uman Develo'ment Index+ 2013+ !7D Online "eference for Data &tt'A//(((*data*(orldban1*or)/indicator/E7*A-;*3@2E* 3 &tt'A//(((*data*(orldban1*or)/about/millennium-develo'ment-)oals &tt'A//(((*foot'rintnet(or1*or)/en/index*'&'//07/'a)e/trends/ &tt'A//(((*indexmundi*com/)/r*as'xGvHE9