موضوعات
عنوان مقاله English
نویسندگان English
Poverty, inequality, and the unequal distribution of income—along with the resulting crises such as environmental degradation—are among the most pressing challenges facing both developed and developing countries. Environmental degradation manifests in numerous forms, including water scarcity, air pollution, soil erosion, deforestation, loss of biodiversity, and climate change driven by global warming. Using principal component analysis (PCA), this study constructs an environmental degradation index by integrating six key indicators: water scarcity, water pollution, air pollution, soil pollution, deforestation, and climate change. This approach appears to represent the first domestically conducted effort of its kind. The primary aim of this study is to examine the effect of poverty on environmental degradation through various transmission channels—including institutional factors, restrictive regulations, and energy prices—across Iranian provinces from 2010 to 2019 using a spatial panel data model. The findings reveal that poverty has a positive and statistically significant impact on environmental degradation within a province, as well as on degradation in neighboring provinces. Conversely, per capita income and institutional quality exhibit a significant negative relationship with environmental degradation, contributing to environmental improvement locally and regionally. On the other hand, energy prices and restrictive regulations show a positive and statistically significant relationship with environmental degradation. These results underscore the regional interdependence of environmental policies, highlighting that poverty reduction strategies, institutional reforms, and the design of regulatory frameworks in one province can generate significant spillover effects in adjacent regions.
Aim and Introduction
The objective of this article is to investigate the influence of poverty on environmental degradation through a set of interrelated channels—including institutional quality, restrictive regulations, and energy prices—across Iranian provinces from 2010 to 2019, using a spatial panel data framework.
Poverty, inequality, and unfair distribution of income, along with their associated socio-environmental crises, pose significant challenges to both developed and developing nations. Among the key consequences of environmental degradation are water scarcity, air and soil pollution, deforestation, biodiversity loss, and climate change caused by global warming.
In this study, an environmental degradation index is developed using PCA to combine six critical environmental indicators: water scarcity, water pollution, air pollution, soil pollution, deforestation, and climate change. To the best of our knowledge, this constitutes the first domestic application of PCA for constructing such an index in Iran.
Methodology
Environmental degradation in this study encompasses six variables: water scarcity, water pollution, soil pollution, air pollution, deforestation, and climate change. To enable the use of multiple environmental indicators simultaneously, we construct a composite index via principal component analysis (PCA) that captures the multidimensional nature of environmental degradation.
Given the spatial interdependence of environmental outcomes across provinces, we employ spatial econometric techniques. When each observation is geographically dependent on neighboring regions, conventional econometric models become inadequate due to the complexity and volume of parameters involved. The spatial panel model accounts for this by integrating spatial lags and spillover effects, allowing for a more accurate assessment of inter-provincial interactions.
Findings
The spillover effects resulting from a 1% sudden change in the per capita income rate in neighboring provinces are greater than those stemming from the same change within Khodi Province. The net outcome is a 1.85% change in environmental quality, either as degradation or improvement, depending on the direction of the change.
Similarly, the spillover effects caused by a 1% sudden change in the poverty index in neighboring provinces exceed the direct effects within the home province and occur in the same direction. The overall result is a 0.49% degradation in environmental quality.
In contrast, a 1% sudden change in energy prices in Khodi Province has stronger environmental spillover effects than similar changes in neighboring provinces. The net result is a 2% degradation in the environment.
The spillover effects from a 1% sudden change in institutional quality within Khodi Province are more significant than those from neighboring provinces. This results in a 0.35% degradation in the environment.
Finally, the spillover effects caused by a 1% sudden change in restrictive environmental regulations within Khodi Province are stronger than those from neighboring provinces. The outcome is a 0.65% improvement in environmental quality.
Discussion and Conclusion
The results of the spatial econometric models indicate that rising poverty in a region can lead to the spread of environmental degradation through economic, social, and environmental interconnections with neighboring provinces. These findings support the poverty-environment trap theory, which highlights a bidirectional relationship between poverty and overreliance on natural resources.
One of the most significant findings of this study is the negative and statistically significant effect of institutional quality on environmental degradation. Provinces with higher institutional quality tend to implement more effective policies and strategies that mitigate environmental harm. Strong institutions enhance economic productivity and promote the efficient use of natural resources by improving monitoring, ensuring law enforcement, and fostering transparency in resource allocation.
Per capita income also exhibits a negative and significant impact on environmental degradation. Higher per capita income improves economic well-being and raises public awareness about environmental issues, leading to shifts in consumption behavior and greater investment in clean technologies. This result aligns with the Environmental Kuznets Curve (EKC) hypothesis, which posits that at higher levels of income, environmental degradation tends to decrease.
Unexpectedly, the results show that higher energy prices are positively and significantly associated with environmental degradation. This suggests inefficiencies in Iran’s energy pricing policies. Increased energy prices may encourage the illegal use of polluting alternatives or reduce access to clean energy, thereby exacerbating environmental damage. These findings highlight the urgent need to revise national energy policies.
Another notable result is the positive effect of restrictive environmental regulations on degradation. This implies that the mere existence or proliferation of environmental laws does not necessarily improve environmental outcomes. Instead, the quality of regulation and the effectiveness of implementation are crucial. Laws without proper enforcement mechanisms or monitoring systems may inadvertently worsen environmental conditions.
In summary, the study finds that poverty has a positive and significant impact on environmental degradation, with effects that extend beyond provincial borders. Conversely, institutional quality and per capita income have negative and significant effects, suggesting that improvements in these variables can enhance environmental outcomes. On the other hand, increases in energy prices and the implementation of restrictive regulations—when not properly enforced—are linked to environmental degradation
کلیدواژهها English
