ECONOMIC DEVELOPMENT AND ENVIRONMENT

ECONOMIC DEVELOPMENT AND ENVIRONMENT

Economic development is frequently considered to be the culprit for environmental degradation Economic activity can cause environmental Problems, but with right policies and institutions. They can help to solve these problems as well. The policies leading to increasing the efficiency and quality of resources. Without adequate environmental protection, development will be undermined; without development, environmental protection will fail. Thus economic development and sound environmental management are complementary aspects. Human beings should be at the center of economic policy and environmental policies as well. :Economic policies increases the income, which finally lengthen the life, improve the level of education and health of its population. Similarly, Environmental policies that reduce air and water pollution, which improves the well being of people. So we can measure the level of economic development with human development. It is readily available.
HDI – HUMAN DEVELOPMENT INDEX.
EQI – ENVIRONMENTAL QUALITY INDEX.
PSR – PRESSURE – STATE RESPONSE.
DD -- DEVELOPMENT DIMONDS.
ED -- ENVIRONMENTAL DIMONDS.
PCA – TECHNIQUE OF PRINCIPAL COMPONENT ANALYSIS.
Thus HDI readily available from Human Development Report. The Economic Development Index are also available in HDR. The construction of EQI is very complex because it is the question of geographic heterogeneity. The classical example is acid rain, nitrogen oxides, sulphuric acids etc. Building and EQI involves two steps—
1. To calculate values for EQI.
2. To aggregate sub indices in to an overall index.
In this regards technique of PSR is useful. The PSR models rely on assumption that there is a link between the environment and the state of an economy. World Bank in 1994 developed DD. DD for a given country was constructed by using four indicators.—per capita GNP, life expectancy, gross primary enrolment and access of safe water. Similar technique used to construct ED, which consists multi dimensional concepts of air, water, forest, land, solid west, wild life and other bioata. There for a dimensionality reduction technique of PCA is used for transforming co-related FOUR variables--- air quality, land quality, bio-diversity and water quality. In short environmental quality is a multi-dimensional problems, which occurs from industrialization, technical progress in industries as well as in agriculture. But there are relationships between inputs and out puts also between economic activity and environment are dynamic in nature and change continually.