The Effect of Political and Economic Components on Environmental Performance: Application of Ordered Logit Model with Panel- Random Effects

Document Type : Research Paper

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ental performance and quality as main factor of preservation of life, effect human activities and performance so that identify factors affecting it can be appropriate tool to policymakers and planners to achieve economic sustainable growth. Furthermore, this study has conducted to investigate the effect of economical and political components on environmental performance using ordered logit model with panel-random effects for 151 of 2002-2012.In this resarch, the countries classified to 10 groups according to environmental performance index and examined the effect of independent variables on the probability of being in the higher score groups.The results showed that economic growth and population have negative effect and foreign investment and governance indexes have positive effect to environmental performance index. In period , improvement of political situation caused to the promotion of environmental quality and on the other hand, economic growth and population increase are reasons of environmental degradation. Based on results, to achieve the sustainable economic growth should be used to tax tools and reform and legislation to ward conservation of environment suggested.

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