The Measurement of Economic, Social and Environmental Performance of Countries: A Novel Approach

Abstract

This paper presents a new analytical framework for assessing spatial disparities among countries. It takes for granted that the analysis of a country's performance cannot be limited solely to either economic or social factors. The aim of the paper is to combine relevant economic and 'non-economic' (mainly social) aspects of a country's performance in an integrated logical framework. Based on this idea, a structural simultaneous equation model will be presented and estimated in order to explore the direction of the causal relationship between economic and non-economic aspects of a country's performance. Furthermore, an exploration of the trajectory that each country has registered over time along a virtuous path will be offered. By means of a matrix persistency/transition analysis, the countries will be classified in clusters of good/bad performance. One of the most interesting conclusions concerns the inability of most countries to turn the higher educational skills of the population into greater economic performance over time. In addition, our analysis also shows that making an accurate picture record and formulating related policy aiming at environmental care is highly desirable. It is surprising that only a few countries have reached a favourable economic and environmental performance simultaneously.

Environmental Performance in Countries Worldwide: Determinant Factors and Multivariate Analysis

“…This finding is consistent with the statement made by Cracolici et al [18] in the sense that a country's level of GDP is an important aspect if it is to provide its citizens with good living conditions and good social and environmental performance. In the same direction, Esty and Porter [22] also consider that rich countries are the ones with the greatest economic capacity to invest in environmental aspects, such as control of pollution and other aspects that can improve the environment.…”

“…According to Cracolici et al [18], CO2 emissions and the literacy rate are variables capable of capturing the differences among countries in regard to social and environmental dimensions, and a similar result regarding literacy rate was obtained by McGillivary [33].…”

“…Moreover, a country with a good GDP will improve its health services, access to education and working conditions and will protect its citizens from crime. In short, it will provide a more sustainable habitat [18]. These variables have been used by different authors in research studies that analyze their influence on environmental performance [19][20][21].…”

“…According to Cracolici et al [18], a country's level of GDP can be considered a relevant aspect in its ability to provide citizens with good living conditions from an economic, social and environmental point of view. An increase in GDP per capita is necessary to improve the population's standard of living and to provide better social welfare services, as well as better access to education, better working conditions and a healthier and more sustainable environment.…”

Sustainability improvement opportunities in Brazilian sectors: analysis of DEA slacks

“…Since there is much discussion on how to define a multidimensional index of sustainability, combining economic, social and environmental aspects (Cracolici et al, 2010), and based on the definition by Glavic et Lukman (2007) of the sustainable production concept, Camioto et al (2014) analyzed the performance of the main industrial sectors in Brazil, from 1996 to 2009, considering energy consumption and its contribution toward the economic and social aspects of the country. In this work, an aggregate assessment of each sector was performed in terms of sustainability, but an analysis of the performance of each variable was not performed through the gaps.…”