What is the relationship between environmental quality, economic growth and free trade?

Abstract

This paper tries to examine the links between free trade, growth, and environmental quality in Morocco, Algeria, Tunisia, and Egypt, denoted MATE. During the last years, many agreements are concluded especially with developed countries. These agreements can improve economic growth, which is necessary in response especially to the increasing demand of their populations, and to the improvement of the life’s quality of their citizens. But, it can also decrease the environmental quality because there is a causal relationship between these variables. For that, quadratic and cubic functions for each country over the period 1970-2010 are tested to measure this relationship, and to determinate the possibilities of the existence of an inverted U-shaped or inverted N-shaped functions, and, then, a vector auto regression (VAR) or a vector error correction model (VECM) are used to analyze the long-run and short-run relationships between those variables. To complete analysis, it is often useful to know the response of independent variable and it adopts a variance decomposition to explain the magnitude of the forecast error variance determined by the stocks to each of the causal variables over time.

Kaynakça

1. Antweiler, W., Copeland B. R., and Taylor M. S. (2001). "Is free trade good for the environment?", American Economic Review, 91, 877-908.
2. Arrow, K., B. Bolin, R. Costanza, P. Dasgupta, C. Folke, C. S. Holling, B. O. Jansson, S. Levin, K. Mäler, C. Perrings and Pimentel D. (1995). "Economic growth, carrying capacity and the environment", Science, 268, 520-21.
3. Bass, S. (2006). "Making poverty reduction irreversible: development implications of the Millennium Ecosystem Assessment". IIED Environment for the MDGs’ Briefing Paper. International Institute on Environment and Development, London
4. Becker, G. S., (1962), "Investment in Human Capital: A Theoretical Analysis". Journal of Political Economy, 70(5): pp. 9-19.
5. Beckerman, W. (1992). "Economic development and the Environment: Conflit or Complementarity", Background Paper for the World Development Report 1992, The World Bank, Washington, DC.
6. Blaug, M., (1976). "The Empirical Status of Human Capital Theory: A Slightly Jaundiced Survey". Journal of Economic Literature, 14(3): 827-55.
7. Bourdieu, P., (1985). "The forms of capital". In JG Richardson (Ed.), Handbook of Theory and Research for the Sociology of Education, pp. 241–258. NewYork: Greenwood.
8. Bradford D.F., R. Schlieckert and S.H. Shore (2005), "The Environmental Kuznets Curve: Exploring a Fresh Specification", Economic Analysis & Policy 4(1), Article5.

9. Chertow, M. R. (2001). "The IPAT Equation and Its Variants. Changing Views of Technology and Environmental Impact". Journal of Industrial Ecology, Vol. 4. No4. pp. 13-29.
10. Chivian E, Bernstein A. (2010). "How Our Health Depends on Biodiversity". Boston, MA: Center of Health and the Global Environment, Harvard Medical School.
11. Cole, M. A., Rayner A. J. and Bates J. M. (1997). "The Environmental Kuznets Curve: An Empirical Analysis", Environment and Development Economics, vol. 2; pp. 401-416.
12. Cole, M. A. (1999). "Limits to growth, Sustainable development and Environmental Kuznets Curves: an Examination of the environmental impact of economic development", Sustainable Development. Sust. Dev. 7, 87–97.
13. Cole, M. A. and Neumayer, E. (2005). "Environmental policy and the environmental kuznets curve: can developing countries escape the detrimental consequences of economic growth?". In: Dauvergne, Peter, (ed.) Handbook of Global Environmental Politics. Elgar original reference. Edward Elgar, Cheltenham, UK, 298-318. ISBN 9781843764663
14. Coleman, J. S., (1988a). "Social capital in the creation of human capital". Am. J. Social, 94: 95-121.
15. Coleman, J. S., (1988b). "The creation and destruction of social capital: implications for the law". Notre Dame J. Law, Ethics, Public Policy, 3: 375-404.
16. Commoner, B., Corr, M., and Stamler, P. J., (1971). "The Causes of Pollution". Environment 13: 2-19.
17. Commoner, B. (1972. a). "A Bulletin Dialogue on 'The Closing Circle': Response". Bulletin of the Atomic Scientists 28 (5): 17, 42-56.
18. Commoner, B. (1972. b). "The Environmental Cost of Economic Growth". pp. 339-363 in R. G. Ridker (ed.). Population, Resources and the Environment. Washington, DC: Government Printing Office.
19. Costanza, R and DalyH. E., (1992). "Natural capital and Sustainable development". Conserve. Biol., 6: 37-46.
20. Cropper, M. and Griffiths, C. (1994). "The Interaction of Population Growth and Environmental Quality". The American Economic Review. Vol. 84, No. 2, Papers and Proceedings of the Hundred and Sixth Annual Meeting of the American Economic Association (May, 1994), pp. 250-254
21. Daniel J. Jacob. (1999). "Introduction to atmospheric chemistry". Published by Princeton University Press Princeton, New Jersey.
22. Ehrlich, P. R. and Holdren, J. P. (1971). "Impact of Population Growth. " Science 171: 1212-1217.
23. Ehrlich, P. R. and Holdren, J. P. (1972). "A Bulletin Dialogue on 'The Closing Circle': Critique. " Bulletin of the Atomic Scientists 28(5): 16, 18-27.
24. Ekins, P. (1997). "The Kuznets curve for the environment and economic growth: examining the evidence", Environment and Planning A, 29, 805-30.
25. El Alaoui, A. (2015), "Causality and Cointegration between Export, Import and Economic Growth: Evidence from Morocco", Journal of World Economic Research 2015; 4(3): 83-91. doi: 10.11648/j.jwer.20150403.14
26. El Alaoui, A. and Nekrach, H. (2015), "For sustainable economic growth that seeks improving environmental quality: an empirical analysis applied to Morocco, Algeria, Tunisia, and Egypt", Communication on 4th Edition of the EHSP-NRCS International Conference on: Human & Environmental Security in the Era of Global Risks (HES2015). November 25-27, 2015 | Agadir, Morocco
27. Galeotti M. and A. Lanza (1999), "Richer and cleaner? A study on carbon dioxide emissions in developing countries", Energy Policy 27, 565– 573.
28. Global Development Research Center (GDRC), "SD Features Sustainability Concepts: Natural capital", www. gdrc. org/sustdev/concepts/26-nat-capital. html
29. Grossman, G. M., & Krueger, A. B. (1991). "Environmental impacts of a North American Free Trade Agreement". National Bureau of Economic Research. Working Paper No 3914, NBER, Cambridge MA.
30. Grossman, G. M. and Krueger, A. B. (1995). "Economic growth and the environment", Quarterly Journal of Economics Vol.112, pp. 353-378.
31. IPCC, Intergovernmental Panel on Climate Change, (2014). "Climate Change 2014: Synthesis Report". Contribution of Working Groups I, II and III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, R. K. Pachauri and L. A. Meyer (eds.)]. IPCC, Geneva, Switzerland, 151 page.
32. Khagram, S., Clark, W. C., and Raad, D. F. (2003). "From the Environment and Human Security to Sustainable Security and Development", Journal of Human Development 4(2): 289-313.
33. Kiker, B. F., (1966), "The historical roots of the concept of human capital", Journal of Political Economy, 74(5): 481-99.
34. Kuznets, S. (1955), "Economic growth and income inequality", American Economic Review, 49, 1-28.
35. List J.A. and C.A. Gallet (1999), "The environmental Kuznets curve: does one size fit all? ", Ecological Economics 31, 409-423.
36. Lopez, R. (1994). "The Environment as a Factor of Production: The Effects of Economic Growth and Trade Liberalization". Journal of Environmental Economics and Management 27(2): 185-204.
37. Martino, D. and Zommers, Z. (2007). "Environment for Development", Chapter 1 of report of Global Environment Outlook, GEO4, United Nations Environment Programme (UNEP).
38. Mincer, J., (1958), "Investment in human capital and personal income distribution", Journal of Political Economy, 66(4): 281-302.
39. Mincer, J., (1962), "On-the-job training: Costs, returns, and some implications", Journal of Political Economy, 70: 50-79.
40. O'Connor, D., (1994). Managing the Environment with Rapid Industrialisation: Lessons from the East Asian Experience. Development Centre Study, OECD, Paris
41. Panayotou, T. (1993). "Empirical tests and policy analysis of environmental degradation at different stages of economic development". Working Paper WP238, Technology and Employment Programme, International Labour Office, Geneva.
42. Panayotou, T. (1997). ''Demystifying the Environmental Kuznets Curve. Turning a Black Box into a Policy Tool'', Environment and Development Economics. Vol.2, Issue:4, pp 465-484.
43. Panayotou, T. (2003). "Economic growth and the environment", Harvard University and Cyprus International Institute of Management.
44. Perman, R. and Stern, D. I. (1999), "The environmental Kuznets curve: implications of Non-stationarity", working papers in ecological economics 9901, Centre for Resource and Environmental Studies, Australian National University, Canberra.
45. Portes, A., (1998). "Social capital: its origins and applications in modern sociology". Annual Review of Sociology, 24: 1-24.
46. Putnam, R. D., (1993). "The prosperous community: social capital and public life". American Prospect, 4(13): 35-42.
47. Selden, T. M. and Song D. (1994). "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?", Journal of Environmental Economics and Management, vol.27; pp. 147-162.
48. Shafik, N., and Bandyopadhyay, S. (1992). "Economic Growth and Environmental Quality: Time Series and Crosscountry Evidence". Background Paper for the World Development Report 1992, the World Bank, Washington, DC.
49. Shafik, Nemat. 1994. Economic Development and Environmental Quality: An Econometric Analysis. Oxford Economic Papers 46: 757-77.
50. Schultz, T. W., (1961), "Investment in human capital", The American Economic Review, 51(1): 1-17.
51. Schultz, T. W., (1962), "Reflexions on investment in man", Journal of Political Economy, 70(5): 1-8.
52. Stern, D. I. and Common M. S. (2001), "Is there an environmental Kuznets curve for sulfur?", Journal of Environmental Economics and Management, 41, 162–78.
53. Stern David I. (2004). "The Rise and Fall of the Environmental Kuznets Curve", World Development Vol. 32, No.8, pp. 1419-1439.
54. Torras, M. and Boyce J. K. (1998). "Income, Inequality, and Pollution: A Reassessment of the Environmental Kuznets Curve". Ecological Economics 25(2): 147-60.
55. World Bank (2006). "Where is the Wealth of Nations? Measuring Capital for the 21st Century". The World Bank, Washington, DC
56. Yandle B., Vijayaraghavan, M. and Bhattarai, M. (2002). "The Environmental Kuznets Curve: A Primer". Research Study 02-1. Montana, USA. Political Economy Research Center (PERC).