Economic development and environmental sustainability: evidence from Asia

We examine the relationship between economic development and environmental sustainability in Asia with a panel data of 34 Asian countries in 2000-2012. Along with the full sample of countries, we also examine three subsamples based on income level. We use six indicators of environmental sustainability-pesticide regulation, air pollution (PM2.5), PM2.5 exceedance, terrestrial protected areas (national biome weights), terrestrial protected areas (global biome weights), and child mortality. Our results indicate that Asian countries as a whole have managed well in pesticide regulation and child mortality, but poorly in air quality, as measured by PM2.5 exceedance. Apart from the poor management in air quality, we do not find any evidence of sustainability in protected areas. However, for the subsample of high-income countries, we find similar results to those of the entire sample but confirm evidence of sustainability in biodiversity and habitat. For the subsample of upper-middle-income countries, we find evidence of sustainability in pesticide regulation and child mortality, but air quality management has been poor and there is no evidence of sustainability in biodiversity and habitat. The subsample of low- and lower-middle-income countries, where air quality is at risk, appears to have achieved sustainability only in pesticide regulation.