Impact of CO₂ emission, per capita income and HDI on Environmental Performance Index: empirical evidence from Bangladesh
by Md. Arfanuzzaman
International Journal of Green Economics (IJGE), Vol. 10, No. 3/4, 2016

Abstract: The Environmental Performance Index (EPI) is a wide ranging dimension of environmental parameters, which need to be assessed with different socioeconomic indicators with a view to inspect environmental sustainability of a growing economy like Bangladesh. The endeavour is given in this study to examine the short run and long run relationship between CO₂ emission, Per Capita Income, HDI and EPI. Besides, the influence of selected variables on EPI has been ascertained by systematic econometric exercise. It is appeared in the estimation that, there is a cointegrating relationship between CO₂ emission, Per Capita Income, HDI and EPI of Bangladesh. A long term associationship emerged among the cointegrated variables in further statistical sophistication and found causality is running form the explanatory variables to EPI; meaning that Per Capita Income, Human Development Index and CO₂ emission has influence on Environmental Performance Index in the long run. Transitory effect analysis revealed no short run relationship between HDI, CO₂ emission and EPI. Furthermore, multiple regression model signifies the negative association between EPI and Per Capita Income, marginal relationship between CO₂ emission and EPI, and considerable impact on EPI by Human Development Index.

Online publication date: Mon, 30-Jan-2017

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