Presentation Title

Environmental Performance: The Eurozone Must Be Abolished!

Faculty Mentor

Roger White, Professor of Economics, Whittier College

Start Date

18-11-2017 9:15 AM

End Date

18-11-2017 9:30 AM

Location

15-1807

Session

Social Science 2

Type of Presentation

Oral Talk

Subject Area

behavioral_social_sciences

Abstract

In recent years, we have witnessed an increased importance of environmental health and ecosystem vitality. Environmental sustainability requires countries improve their performance in regards to environmental standards. This study research addresses the issue of environmental sustainability; or, more specifically, the lack of strong growth in environmental performance among Eurozone member nations. The analysis considers two dimensions of integration; the first being political integration and the second being economical integration. Policies originating from the European Central Bank fail to meet best interests of the Eurozone; restrictions of the ECB may convey weakened political integration in the Eurozone. When economic integration is accompanied by strong measures of political integration, sustainability and prosperity will be stronger and stability higher. Based on our initial analysis of economic and political integration, and the intuition that environmental performance is better when strong political and economic intuitions are in place, a regression analysis is performed to compare the environmental performance of Eurozone members relative to non-Eurozone OECD member nations. Our results demonstrate that the ten-year change in the Yale Environmental Performance Index over the period 2006-2016 was significantly higher for the non-Eurozone OECD members relative to the change realized by Eurozone member countries. The findings are important as they suggest that global environmental sustainability may be more easily attained if the Eurozone is abolished.

Summary of research results to be presented

Econometric techniques are used to compare the environmental performance of Eurozone members relative to non-Eurozone OECD member nations. We use the Yale Environmental Performance Index as our dependent variable for the measurement of environmental performance. Independent variables tested for based on reviewing relevant literature include the following; Index of Economic Freedom, Corruption Perceptions Index, Global Innovation Index, Political Sustainability & Absence of Violence/Terrorism, and the Legatum Prosperity Index. 19 OECD countries not in the Eurozone are measured alongside the current 19 Eurozone countries today, with data from the periods 2006-2016. We use the ten-year change in the EPI scores to measure growth of environmental performance, while all other measurements will use a country’s score on their respective measurements over time. Due to insufficient data on scoring, we will resort to using rankings for the Legatum Prosperity Index. Our results demonstrate that the ten-year change in the Yale Environmental Performance Index over the period 2006-2016 was significantly higher for the non-Eurozone OECD members relative to the change realized by Eurozone member countries. The findings are important as they suggest that global environmental sustainability may be more easily attained if the Eurozone is abolished.

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Nov 18th, 9:15 AM Nov 18th, 9:30 AM

Environmental Performance: The Eurozone Must Be Abolished!

15-1807

In recent years, we have witnessed an increased importance of environmental health and ecosystem vitality. Environmental sustainability requires countries improve their performance in regards to environmental standards. This study research addresses the issue of environmental sustainability; or, more specifically, the lack of strong growth in environmental performance among Eurozone member nations. The analysis considers two dimensions of integration; the first being political integration and the second being economical integration. Policies originating from the European Central Bank fail to meet best interests of the Eurozone; restrictions of the ECB may convey weakened political integration in the Eurozone. When economic integration is accompanied by strong measures of political integration, sustainability and prosperity will be stronger and stability higher. Based on our initial analysis of economic and political integration, and the intuition that environmental performance is better when strong political and economic intuitions are in place, a regression analysis is performed to compare the environmental performance of Eurozone members relative to non-Eurozone OECD member nations. Our results demonstrate that the ten-year change in the Yale Environmental Performance Index over the period 2006-2016 was significantly higher for the non-Eurozone OECD members relative to the change realized by Eurozone member countries. The findings are important as they suggest that global environmental sustainability may be more easily attained if the Eurozone is abolished.