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Freedom’s Environmental Rewards: A Global Comparison

Don Coursey and Christopher Hartwell

During the past 30 years, the sharp rise in environmental awareness has led to many diverse regional, national and international laws and policies designed to improve environmental quality. As a result, today the environment is healthier in some parts of the world than in others, and researchers are interested in the economic and political powers responsible for this disparity. In Environmental and Public Health Outcomes: An International and Historic Comparison, University of Chicago Harris School Professor Don Coursey and Reason Public Policy Institute Policy Analyst Christopher Hartwell conducted a historical examination of the public health and environmental outcomes of 130 countries between 1960 and 1992. Using this data, they explored the link between economic freedom and environmental quality and found, on average, that countries with repressive governments tend to have poorer environmental conditions and worse public health. The researchers conclude that domestic or international policies that lead to stronger economies and greater political freedoms will generate a healthier package of environmental and public health benefits.

Key Findings

Coursey and Hartwell found that countries providing fewer economic and political freedoms consistently produced higher levels of pollutants and exhibited signs of poorer public health. For example, such countries tend to have higher levels of carbon dioxide, higher rates of infant mortality and lower life expectancy. The researchers conclude that democratic societies are able to respond to their citizens' preferences for a clean environment more readily than authoritarian or totalitarian regimes. They find that the data also suggests difficulty in carrying out environmental improvements in a society with weak property rights and a high threat of government intervention.

 

Coursey and Hartwell stress that domestic and international policies that lead to stronger economies and increased societal freedoms tend to result in improved environments and better public health. In addition, the researchers use this fundamental finding to support economic treaties and global trade initiatives - such as NAFTA, GATT, and the WTO - which other researchers have opposed on environmental grounds.

Using multiple indicators of environmental cleanliness and progress, the researchers discover an interesting correlation between higher income and educational levels and healthy environments. One exception to this trend is in energy consumption patterns, where higher incomes and education levels create a increased demand for energy resources, and thus raise levels of environmental pollution. However, the researchers also found that higher income and education levels can lead to more efficient consumption of natural resources, even as those resources are in greater demand. For example, countries with higher education levels tend to have cleaner energy production, in addition to increased agricultural productivity and higher rates of metal usage.

One surprising finding is the consistent improvement of worldwide environmental quality during the last 30 years. Researchers could not determine whether the upward trend in environmental health was a due to increased environmental awareness or due to the free exchange of ideas resulting from new information technology, or a combination thereof. Coursey and Hartwell suggest further analysis into the interaction between wealth and intellectual freedom and encourage research on the ways in which a freer society can encourage environmental health.

Background

Over the past 30 years a variety of theories and models have been proposed to explain the rise of the environmental movement and the increased desire - on the part of both citizens and governments - for improvements in environmental quality. Six leading theories try to explain this rise in environmental consciousness: (1) Consciousness has risen because individuals are becoming more exposed to, and aware of, nature and the environment; (2) Consciousness has risen as a result of specific, usually negative, events, such as oil tanker spills; (3) Consciousness has risen due to the accumulation and dissemination of scientific information about the environment; (4) Consciousness has risen because changes in religion and ethics led to the development of environment movements around the world; i.e. religious bias against nature was replaced by environmental-appreciation; (5) Consciousness has risen following a series of factors, such as consumerism, animal rights issues, and skepticism regarding the ability of science to improve the quality of life.

A final, sixth set of models used to explain the rise in environmental consciousness is rooted in the field of political economy. In this model, microeconomic and econometric techniques are utilized to examine how economic growth and environmental factors are linked. Most of these empirical analyses suggest that as a country's economy grows, many of its environmental problems decline. These models further suggest that there are thresholds to solving environmental problems (i.e., below certain income levels economic growth may worsen environmental problems, but once income thresholds are reached, a country's economic and political forces are marshaled in a manner that reduces the magnitude of environmental problems).

Methodology

The bulk of the data examined in this paper came from the World Bank's World Development Indications (WDI) and includes data for 130 countries from 1960-1992. Other sources for compiling cross-country, time series data included the U.S. Bureau of the Census International Database, the Penn World Tables and the International Historical Statistics (IHS). Researchers compiled 13 dependent variables, such as Carbon Dioxide Per Capita and Electricity Use Per Capita; and 5 independent variables, such as Income Per Capita and Population Density. Each of the dependent variables was regressed against each of the independent variables.

This paper was prepared for the conference "Regulation of Managed Care Organizations and Its Impact on the Physician-Patient Relationship," held at the University of Chicago Law School, December 8-9, 2000. A revised version is scheduled to be published in the Journal of Legal Studies in early 2002. Download a copy of this study here.

Research Summaries are designed to help broaden the dissemination of current policy-relevant research. These Summaries are funded by the Irving B. Harris Graduate School of Public Policy Studies at the University of Chicago.

For more information, contact Jamie Rosman at HarrisSchool@uchicago.edu or (773) 702.2287.


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