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Modeling the impact of environmental investments on the environment state

Author

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  • Yavorska Nadiya

    (Lviv Polytechnic National University)

Abstract

The object of research is the level of environmental pollution by the example of Ukraine. The paper investigates the relationship between the volume of capital investment and a decrease in the level of environmental pollution. The methodological basis of the study is the fundamental foundations of economic theory, environmental protection, environmental economics, statistics and econometrics. To develop a statistical model of the relationship between environmental investment and environmental pollution, a correlation analysis is carried out using the paired regression equation, where a hypothesis is put forward that the relationship between all possible values of factorial and effective indicators is linear. The parameters of the constructed models are estimated by the least squares method and the statistical significance of the models is checked. The research results indicate the presence of a close inverse relationship between the volumes of capital investments for the protection of atmospheric air on the volume of emissions of pollutants into the air. This is due to the fact that the linear correlation coefficient is: –0.826, and the value of the coefficient of determination (0.6818) shows the decisive influence of capital investments on emissions. Checking the statistical significance of the model makes it possible to recognize the constructed econometric model of the effect on the volume of emissions of pollutants into the air as statistically reliable. The resulting model can be used to predict the volume of emissions of pollutants into the air and provides an opportunity to address issues of optimizing investment and environmental policies. On the other hand, an econometric model is obtained for the effect on the amount of recycled waste, which is characterized by a noticeable direct relationship (linear correlation coefficient – 0.595) and shows that only 35.44 % of recycled waste is directly related to the volume of capital investments. Checking the statistical significance shows the unreliability of the model of influence on the amount of disposed waste. Although the resulting model can’t be used for forecasting, it can be used in further studies to identify other factors influencing waste disposal.

Suggested Citation

  • Yavorska Nadiya, 2020. "Modeling the impact of environmental investments on the environment state," Technology audit and production reserves, Socionet;Technology audit and production reserves, vol. 5(4(55)), pages 44-47.
    • Handle: RePEc:nos:ddldem:54
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    References listed on IDEAS

    as
    1. Meng Yan & Zhen An, 2017. "Foreign Direct Investment and Environmental Pollution: New Evidence from China," Econometrics Letters, Bilimsel Mektuplar Organizasyonu (Scientific letters), vol. 4(1), pages 1-17.
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    3. Zeng, Ka & Eastin, Joshua, 2012. "Do Developing Countries Invest Up? The Environmental Effects of Foreign Direct Investment from Less-Developed Countries," World Development, Elsevier, vol. 40(11), pages 2221-2233.
    4. Zhu, Huiming & Duan, Lijun & Guo, Yawei & Yu, Keming, 2016. "The effects of FDI, economic growth and energy consumption on carbon emissions in ASEAN-5: Evidence from panel quantile regression," Economic Modelling, Elsevier, vol. 58(C), pages 237-248.
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    More about this item

    Keywords

    capital investments for environmental protection; correlation analysis; pair regression equations;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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