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The environmental impact of economic activity on the planet: the role of service activities

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  • Jos? Aureliano Mart?n Segura
  • Espigares Jos? Luis Navarro

Abstract

In these times when The United Nations organization is discussing the post-2015 agenda, this paper provides an updated quantification of the environmental impact index and its evolution during the last fifty years. Based on the theoretical model of consumption equations initiated by Paul Ehrlich and John Holdren in the seventies, an updated and global environmental impact index estimate was carried out. The geographic scope of the study included all countries for which data are published in the database of the World Bank for the period 1961-2012. Once it was noted the growing evolution of this index, the secondary objectives of the study were focused on the analysis of the relationship between the calculated impact index and two variables. The first variable is linked to one of the main consequences of environmental degradation, the health of the population - estimated by the mortality rate. The second variable is linked to one of the main proposals to mitigate the environmental impact solutions, green investments - estimated by the volume of investment in R&D. These relationships have been studied by two separate econometric panel data models, and the results showed in both a positive and statistically significant relationship of impact index on mortality and investments in R&D. Finally, policy recommendations steer action towards green investments and the practice of business models based on social responsibility.

Suggested Citation

  • Jos? Aureliano Mart?n Segura & Espigares Jos? Luis Navarro, 2014. "The environmental impact of economic activity on the planet: the role of service activities," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2014(3), pages 53-78.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2014-003004
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    More about this item

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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