Poverty, Environmental Degradation, and Livability: Ranking of Iranian Provinces Using Principal Component Analysis

Nazi Mohammadzadeh Asl and Soheil Hataminia

MPRA Paper from University Library of Munich, Germany

Abstract: The relationship between poverty and the environment is multi-dimensional and complex, necessitating a detailed analysis, particularly at the regional level. This study evaluates and ranks Iran’s 30 provinces based on the poverty-environment nexus. Using Principal Component Analysis (PCA), a composite index comprMiising energy consumption intensity, CO₂ emissions, water stress index, and desertified land area was developed for the year 2021. The first two principal components explained approximately 71% of the total variance. Results indicate a significant negative correlation between poverty and environmental degradation (r = -0.61). In this context, wealthier provinces such as Tehran, Isfahan, and Khuzestan experience the highest environmental degradation, whereas poorer provinces encounter relatively less environmental pressure. The findings suggest that improved economic conditions in Iranian provinces have often been accompanied by reduced livability and heightened environmental degradation. Therefore, policymakers are advised to prioritize enhancing livability by integrating sustainable water resource management and desertification control into poverty alleviation strategies.

Keywords: Welfare; Poverty; Inequality; Environment; Livability (search for similar items in EconPapers)
JEL-codes: A12 A13 I3 I31 O10 O18 O21 O44 Q2 Q25 Q28 Q5 Q52 Q53 Q54 Q56 Q57 Q58 (search for similar items in EconPapers)
Date: 2025-02-11
New Economics Papers: this item is included in nep-ara
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Published in Bi-quarterly Journal of Development Economics and Planning 2.11(2024): pp. 83-99

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:125768

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