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Presentation
Environment, Human Development and Economic Growth after Liberalisation: An Analysis of Indian States
Interdisciplinary Research Methodology Workshop on “Environment, Sustainable Development and Human Well-being”, Madras Institute of Development Studies (2008)
  • Sacchidananda Mukherjee
  • Debashis Chakraborty
Abstract
Economic growth does not necessarily ensure environmental sustainability for a country. The relationship between the two is far more complicated for developing countries like India, given the dependence of a large section of the population on natural resources for livelihood. Under this backdrop, the current study attempts to analyse the relationships among Environmental Quality (EQ), Human Development (HD) and Economic Growth (EG) for 14 major Indian States during 1991-2004. For understanding the temporal changes in EQ, the sample period is divided in two: Period A (1990– 1996) and Period B (1997–2004). For both the sub-periods, 63 environmental indicators have been clustered under eight broad environmental groups and an overall index of EQ is created using the HDI methodology. The EQ ranks of the States exhibit variation over time, implying that environment has both spatial and temporal dimensions. Ranking of the States across different environmental groups show that different States possess different strengths and weaknesses in managing various aspects of EQ. The HDI rankings of the States for the two periods are constructed by the HDI technique following the National Human Development Report 2001 methodology. The test for the Environmental Kuznets Curve hypothesis indicates non-linear relationship between several individual environmental groups and per capita net state domestic product (PCNSDP). The relationship between EQ and EG however does not become clear from the current study. The regression results involving individual environment groups and HDI score indicate a slanting N-shaped relationship. The paper concludes that individual States should adopt environmental management practices based on their local (at the most disaggregated level) environmental information.
Keywords
  • Environmental Quality,
  • Economic Liberalisation,
  • Economic Growth,
  • Human Development,
  • India.
Disciplines
Publication Date
February, 2008
Citation Information
Sacchidananda Mukherjee and Debashis Chakraborty. "Environment, Human Development and Economic Growth after Liberalisation: An Analysis of Indian States" Interdisciplinary Research Methodology Workshop on “Environment, Sustainable Development and Human Well-being”, Madras Institute of Development Studies (2008)
Available at: http://works.bepress.com/sacchidananda_mukherjee/14/