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Economic growth and environmental degradation are like two sides of a coin implying that these two variables are interdependent. Therefore, the main objective of this study is to investigate the relationship between economic growth and environmental quality. Moreover, this study attempted to identify the relationships between the environmental qual...
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Context 1
... high growth rate is expected to continue, and the GDP per capita will also rise in the same direction as the past decades. As shown in Table 1 (Figure 2). During the mid 1990s, the GDP per capita reached its minimum point because at that time the country faced severe political turmoil. ...
Citations
... Most of them used the traditional GDP measurement as an indicator of economic growth. For example Adem et al. (2020); Mensah and Ricart Casadevall (2019); Bryant et al. (2020); Ruiz and Guevara (2020) environment and economic growth are related. Kong et al. (2019); Liang and Yang (2019) and Marques et al. (2018) have also attempted to develop a context that can recognize the influence of the environment on development. ...
Conventional GDP measurements often overlooks the significant contribution of the environment to a country’s long-term economic performance, leading to inaccurate assessments and the concealment of important environmental and economic benefits. The aim of this study is to estimate the level of environmental capital and sustainable income. To determine the contribution of environmental capital to GDP, the concept of the neoclassical growth model was used. This analytical approach begins by defining the two types of capital inputs, such as: human capital and environmental capital used in the production of final goods and services. The study found that the total share of environmental capital in GDP was 32% over the study period, while the contribution of environmental capital to gross national production fell from 39% in 2000 to 29% in 2018. The gap between GDP and sustainable GDP estimate also widened between 2003 and 2011. A comparison between GDP and sustainable GDP shows that environmental resource damage can account for up to 15.5% of GDP, leading to an overestimation of GDP. The decline in the share of environmental capital may have long-term implications for the potential of low-income countries to grow sustainably. Therefore, policymakers need to pay adequate attention to environmental capital investments to ensure the long-term sustainability of the economy. Institutions directly involved in GDP estimation also should have been transformed to a more comprehensive and environmental integrated GDP measurement.
... However, in the long term, unsustainable use of these natural resources increases not only environmental degradation but also decreases economic growth and livelihood opportunities (Adem et al., 2020). Agriculture is an important component for economic growth, but it is also associated with significant environmental issues. ...
... Currently, what kind of relationship does environment and agricultural sector has in Ethiopia? is the main focus of this study. So far, a lot of research has been devoted to investigating the nexus between economic growth and environment using the environmental Kuznets curve (EKC) hypothesis in Ethiopia using different pollution indicators and periods as indicated by various studies such as (Adedoyin et al., 2020;Getachew and Assefa, 2020;Adem et al., 2020;Adugna, 2022). Though in my knowledge, the nexus between agricultural production and environment is not yet studied and all of the above empirical studies in Ethiopia have taken CO2 emissions as a proxy variable for the environment, though the importance of nitrous oxide (N2O) emissions is immense. ...
... Then, the practice of agriculture and the emission of nitrous oxide has positive relationship in the short run and inverse relationship in the long run. Empirically, the study is also consistent with the findings obtained by (Endeg, 2015;Adem et al., 2020). They remarked that agriculture based economic growth would loss bio-diversity loss invariably contribute for environmental degradation. ...
Ensuring environmental sustainability is one of the most important Millennium Development Goals, which aims to integrate the principles of sustainable development into national policies and programs and to reverse the loss of environmental resources. Ethiopia is committed to building a climate-resilient green economy and aims to become a carbon-neutral middle-income nation by 2025. Having this in mind, the main objective of the study is to examine the interaction of the environment with the agriculture sector in Ethiopia by using a data set from 1990 to 2020. The Autoregressive Distributed Lag (ARDL) bound test has indicated that there is a long-run cointegration among the environment, economic growth, agriculture, and population growth. The Autoregressive Distributed Lag model output reveals that agriculture induced nitrous oxide has a long-run relationship with agricultural land allocation and population growth rate. Finally, the same model also assures the environmental Kuznet curve had occurred in the nexus between environment and agriculture in Ethiopia. So, the economic policies should strengthen environmentally friendly production technologies by employing low external agricultural inputs and strive for environmental quality.
... Same like other factors, urbanization also affects environmental quality, where some studies in the prevailing literature indicate that a rise in long term economic growth improves environmental quality. However, a rise in urban populations increases environmental degradation Adem, Solomon [1]. Cities in a country are widely regarded as the primary sources of carbon emissions due to increased urbanization. ...
As a result of rapid economic expansion, increased energy use, and urbanization, global warming and climate change have become serious challenges in recent decades. Institutional quality can be the remedy to impede the harmful effect of factors on environmental quality. This study investigates the impact that urbanization and institutional quality on environmental quality in in the Belt and Road Initiative (BRI) countries from 2002 to 2019. By using two step generalized method of moment, the findings shows that urbanization leads to an increase in carbon dioxide emissions and a decline in environmental quality. On the other hand, the square term of urbanization indicates that an increase in urbanization leads to a reduction in emissions at a later stage after reach a certain level. Education, on the other hand, has the reverse impact of increasing carbon emissions; economic growth, foreign direct investment, and government effectiveness all boost carbon emissions. In a similar vein, the interaction between urbanization and the effectiveness of the government is unfavorable, underscoring the transformative role that the effectiveness of the government plays in leading to environmental sustainability. Finally, the findings of this study have considerable policy implication for the sample countries.
... Due to global changes, the country has experienced a 20% decrease in precipitation since 1960, with a substantial increase in the frequency of droughts (Beyene, 2015). Ethiopia's economic development is highly dependent on natural resources (Adem et al., 2020). Unsustainable resource extraction will undoubtedly aggravate vegetation degradation and affect vegetation ecosystem resilience. ...
Climate change often leads to the vulnerability of vegetation cover, while the impact of human activities on vegetation cover is undoubtedly more complex in this context, especially in Ethiopia. This paper analyzed the spatiotemporal dynamics of vegetation growth in Ethiopia from 2003 to 2018 by the enhanced vegetation index (EVI) based on different time scales and explored the coefficient of variation and driving factors of the fractional vegetation coverage (FVC). The results indicated that the EVI mainly presents a “double peak” pattern, with large spatiotemporal differences between quarters and months in Ethiopia. The FVC increased by 0.0005 per year, but vegetation showed a browning trend after 2013. The FVC degraded area accounted for 43.9% of the total area, of which the significantly degraded area accounted for 7.51% due to human activities, mainly in northern, central, and southern Ethiopia. The effects of precipitation and maximum temperature on vegetation differed on time scales. Spatially, the vegetation on the northwest side of the Main Ethiopian Rift Valley (MERV) was dominated by a combination of maximum temperature and precipitation, while vegetation on the southeast side of MERV was mainly influenced by precipitation. However, the spatial overlay analysis with degraded and healthy vegetation zones revealed that human activities were the key driver of vegetation cover change rather than climate change. This study provides support for further development of vegetation health conservation policies in Ethiopia and monitoring of vegetation dynamics in other countries around the world.
... Ethiopia is among the poorest countries in the world heavily depending on natural resources for subsistence (Wassie, 2020); which has led to deforestation, low vegetative cover and loss of fertile soil (Welemariam et al., 2018;Tadesse et al., 2001). Subsequently, the country has been facing devastating droughts in some areas, serious flood damages, associated crises in food security, and health impacts (Adem et al., 2020). ...
Restoring the degraded lands through the area exclosure has been practiced and promoted widely in different parts of Ethiopia for the past three to four decades. However, the effectiveness of the approach both in terms of supporting woody species regeneration and the socio-economic conditions around the Wolaita area has not been well studied. We assessed the regeneration status of woody species in seven years old exclosure area and the perception of the local community towards the area exclosure on Damota Mountain in Southern Ethiopia. Vegetation inventory was made in 15 (20 × 20m) quadrats laid following two transect lines running parallel. Systematically selected 71 households from the surrounding villages were interviewed and group discussions were also made. A total of 26 species from 19 families, with a total density of 2864 individuals (DBH ≥ 2cm) per hectare were recorded. The basal area, Shannon diversity index, and evenness in the area exclosure were 15.84 m²/ha, 2.54, and 0.39, respectively. The importance value index (IVI) revealed that Maesa lanceolata, Ozoroa insignis, Maytenus arbutifolia, Nuxia congesta, Rhamnus prinoides, and Rapanea simensis were the most dominant species. About 87.3% of the respondents support further expansion and management of the area exclosure whereas the remaining 12.7% were against the intervention. All interviewed agree on the improvement of the vegetation cover since the establishment of the exclosure. However, all wanted improved access to the grass in the exclosure area so as to use it in a cut-and-carry system. We conclude that exclosure-biological-social issues need to be handled carefully to make the effort of using area exclosure for degraded land management effective and sustainable.
... Environmental degradation is prominent with the continuous increase of carbon emissions, global warming, and other climate problems. The long-run economic growth helps improve the environmental quality and reduce environmental degradation, while population growth worsens the environmental degradation (Adem et al., 2020). As global surface temperatures increase, so does the likelihood of extreme weather. ...
With the rapid economic growth and urbanization, the environment is continuously degrading, and the problem of global warming caused by increasing carbon emissions has been highly highlighted. Utilizing panel data of the Organization for Economic Cooperation and Development (OECD) countries from 1996 to 2018, this study aims to evaluate the effects of urbanization on carbon emissions and explore the transformative role of government effectiveness. To produce more accurate estimates, the approach of the feasible generalized least squares is employed, and the heteroskedastic and correlated errors are considered due to the significant differences among the OECD countries. The results suggest an inverted U-shaped nexus between urbanization and carbon emissions, and for most OECD countries, the enhancement of urbanization is positive to increase carbon emissions. Besides, urbanization positively contributes to government effectiveness. As a transformator, government effectiveness negatively contributes to the effects of urbanization on increasing carbon emissions. That is, with the advancement of government effectiveness, the positive role of urbanization in emitting more carbon dioxide will be transformed to help the OECD countries mitigate carbon emissions. Hence, the findings are informative for policymakers to take effective measures to accelerate the process of urbanization and formulate active measures to improve government effectiveness, thereby decreasing carbon emissions and further mitigating global warming.
... Ethiopia is among the poorest countries in the world heavily depending on natural resources for subsistence (Wassie, 2020); which has led to deforestation, low vegetative cover and loss of fertile soil (Welemariam et al., 2018;Tadesse et al., 2001). Subsequently, the country has been facing devastating droughts in some areas, serious flood damages, associated crises in food security, and health impacts (Adem et al., 2020). ...
This study used regional panel data from Ethiopia to examine the degree to which Ethiopia adhere to the environmental Kuznets curve hypothesis and, in turn, estimate the extent to which its people are willing to contribute to environmental development. According to the research, the country complies with the environmental Kuznets curve hypothesis; though environmental resources are regarded either basic or inferior commodity. In relatively more urbanized regions (Harari and Addis Ababa), EKC is U-shaped, negating the hypothesis. During the short run, environmental willingness to pay is typically seen to be low across the nation, with residents of states with higher levels of forestation being more ready to pay for a cleaner environment. The study concludes that economic development takes precedence over environmental development and suggests pro-growth economic policies backed by environmental development assistances.
