The impact of economic development on carbon intensity of human well-being (CIWB): Evidence from lower middle-income countries

Abstract

The aim of sustainable development is to maintain and progress economic activities while protecting the environment in long run. Recent sustainability researches have focused on the relationship between stress placed on the environment by economic activity and human well-being, known as the Carbon Intensity of Well-Being (CIWB). To contribute to this endeavor, the authors employ two-way fixed effects which analyze the impact of economic and environmental variables on CIWB in 09 lower middle-income countries from 2000 to 2018. We find that economic development includes gross domestic product and annual foreign direct investment, which are significantly negative effects on CIWB. That means economic growth reduced human well-being in the overall sample in the study period. Nevertheless, this effect is unsteady which indicates these countries should wisely choose strategies for sustainable development. In addition, the effect of energy consumption on CIWB has a significant positive in this study.