The dynamics of industrial activity, urbanization, and PM2.5 pollution in central Asian countries: A panel CS-ARDL analysis

The paper deals with the analysis of methodology of Environmental Performance Index. The authors analyzed and systematized the main existing integrated indices, which were used for evaluation of environmental, social and economic situation in the countries. The authors allocated the environmental performance index as a basis for analyzing the environmental policy of the country. In this direction, the authors analysed the main features, structure and indicators of environmental performance index. The authors allocated the world-leader countries with huge level of CO2 emissions. According to the results, the authors aproved that these countries should improve their environmental policy. Accordingly, they occupied less position in environmental performance index. For the purpose to analyze the relation between ecological, social and economic welfare, the authors analyzed score of sustainable development goal index, social progress index and gross domestic product per capita. The comparison analysis of findings showed that countries with good position on environmental performance index have the strong position on sustainable development goal index and social progress index. The authors suggested that Ukraine should orient to the EU countries with purpose to improve the environmental policy.

Oil prices and economic growth are important indicators to see the success of Indonesia’s development performance. The use of oil as the world’s main energy source in general and Indonesia in particular is driven by industrialization. The more industries, the greater the energy resources needed. In the same context, economic growth will also increase oil demand. The purpose of this study is to examine and create empirical evidence of the relationship between world oil prices and economic growth towards domestic oil prices. Furthermore, to test and create empirical evidence on the relationship of domestic oil prices, agriculture, trade, investment, inflation, interest rates, industry, labor, exchange rates and balance of payments to economic growth. The expected output of this research will be to provide information on the policy of the transmission mechanism of oil prices and economic growth in Indonesia. The method used is descriptive and econometric approach to the analysis of simultaneous equation models with two stages of the least squares method. The results of the study indicate that there is a simultaneous relationship between oil prices and economic growth. Economic growth, world oil prices and domestic oil prices a year ago had a positive effect on domestic oil prices. The second result shows that domestic oil, agriculture, investment, interest rates, industry, exchange rates, balance of payments and economic growth in the previous year have a positive effect on economic growth, while trade, inflation and labor have a negative influence on economic growth.

Payment for ecosystem services is a conservation strategy designed to offer farmers financial incentives for managing land to provide ecological benefits without disturbing livelihoods. However, the distribution of spatial financial feasibility is challenging when implementing this strategy on watershed scale. This study aimed to develop payment for ecosystem services model to improve quality in lake water catchment. The model estimated incentive values based on the costs of farmers’ losses, water yields, and pollution loads. The potential loss was calculated by determining the income of farmers in lake water catchment spent on land conversion from intensive agriculture to agroforestry. Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) modeling tool was used to calculate water yield and pollution load. The model was tested with case study approach at Lake Rawa Pening in Indonesia, consisting of nine sub-basins and 75 village administrations. The results showed that the reference compensation for farmers was 1,255.97 USD/ha/year. Considering the spatial distribution of water yields, the incentive for each village varied widely from 891.54 USD/ha/year to 1,557.06 USD/ha/year, even within the same sub-basin. Ten villages had an incentive above 1,450.00 USD/ha/year. However, considering the water pollution load, 26 villages had an incentive above 1,450.00 USD/ha/year with a maximum of 2,024.17 USD/ha/year. Therefore, village boundary should be an analysis unit for determining spatial incentive feasibility rather than a sub-basin boundary. Moreover, the level of water pollution load can become an additional variable to justify the amount of incentives received by farmers.