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Air Pollution and Human Development in Europe: A New Index Using Principal Component Analysis

Author

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  • Ana-Maria Săndică

    (Department of Economics and Economic Policies, Bucharest University of Economic Studies, Romană Square 6, Bucharest 010374, Romania)

  • Monica Dudian

    (Department of Economics and Economic Policies, Bucharest University of Economic Studies, Romană Square 6, Bucharest 010374, Romania)

  • Aurelia Ştefănescu

    (Department of Accounting and Audit, Bucharest University of Economic Studies, Romană Square 6, Bucharest 010374, Romania)

Abstract

EU countries to measure human development incorporating the ambient PM2.5 concentration effect. Using a principal component analysis, we extract the information for 2010 and 2015 using the Real GDP/capita, the life expectancy at birth, tertiary educational attainment, ambient PM2.5 concentration, and the death rate due to exposure to ambient PM2.5 concentration for 29 European countries. This paper has two main results: it gives an overview about the relationship between human development and ambient PM2.5 concentration, and second, it provides a new quantitative measure, PHDI, which reshapes the concept of human development and the exposure to ambient PM2.5 concentration. Using rating classes, we defined thresholds for both HDI and PHDI values to group the countries in four categories. When comparing the migration matrix from 2010 to 2015 for HDI values, some countries improved the development indicator (Romania, Poland, Malta, Estonia, Cyprus), while no downgrades were observed. When comparing the transition matrix using the newly developed indicator, PHDI, the upgrades observed were for Denmark and Estonia, while some countries like Spain and Italy moved to a lower rating class due to ambient PM2.5 concentration.

Suggested Citation

  • Ana-Maria Săndică & Monica Dudian & Aurelia Ştefănescu, 2018. "Air Pollution and Human Development in Europe: A New Index Using Principal Component Analysis," Sustainability, MDPI, vol. 10(2), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:2:p:312-:d:128760
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    References listed on IDEAS

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    5. Amartya Sen, 2000. "A Decade of Human Development," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 1(1), pages 17-23.
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    5. Boyang Xu & Daxin Dong, 2020. "Evaluating the Impact of Air Pollution on China’s Inbound Tourism: A Gravity Model Approach," Sustainability, MDPI, vol. 12(4), pages 1-21, February.

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