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Economic Analysis: Theory and Practice
 

The impact of economy on the environment in countries with different level of development: a comparative analysis

Vol. 14, Iss. 25, JULY 2015

PDF  Article PDF Version

Received: 26 March 2015

Accepted: 12 May 2015

Available online: 13 July 2015

Subject Heading: INTEGRATED ECONOMIC-SOCIO-ECOLOGICAL ANALYSIS

JEL Classification: 

Pages: 20-31

Shkiperova G.T. Institute of Economics, Karelian Research Centre of RAS, Petrozavodsk, Republic of Karelia, Russian Federation
shkiperova@mail.ru

Lukashova I.V. Kyrgyz-Russian Slavic University named after B.N. Yeltsin, Bishkek, Kyrgyz Republic
ir_lukashova@mail.ru

Druzhinin V.P. Petrozavodsk State University, Petrozavodsk, Republic of Karelia, Russian Federation
step_by_step@list.ru

Importance Different scenarios of economic development of Russia and other CIS countries may lead to significantly different ecological consequences, which should be considered in strategic decision- making. Therefore, devising the tools to assess the impact of economy on the environment in countries with different levels of economic development acquires greater relevance.
     Objectives The purpose of the study is to perform a comparative analysis of the impact of economic development on the environment of Russia and Kyrgyzstan.
     Methods
Using the methods of mathematical modeling, we estimate the impact of various economic and demographic factors on the environment. To assess the impact of GDP and population on the environment, we applied IPAT and STIRPAT models, and multiplicative functions enabling to consider the effect of structural changes in the economy, production modernization and environmental investments on environment.
     Results We have identified a number of mutual relations between the economic growth and environmental quality in Russia and Kyrgyzstan, designed new mathematical models that can be used in strategic planning to predict possible environmental consequences of economic growth. We show the advantages and possibility of applying these models to analyze and forecast the effects of economic development on environment.
     Conclusions and Relevance The GDP growth (industrial production) leads to increased pollution. The factors contributing to this influence reduction are the technical modernization, structural changes in the economy, and environmental activities. As opposed to Russia, the calculations made for Kyrgyzstan show that not only the GDP but also changes in the population have an impact on environmental performance. The proposed models help assess the impact of economic growth on the environment and highlight the most significant factors contributing to environmental pressure reduction.

Keywords: economic development, advancement, environment, population, modeling

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