Logistics Performance and Environmental Degradation: The Case of MENA Countries

Seda Özçelik () and Ünal Töngür
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Seda Özçelik: Ankara Yildirim Beyazit University
Ünal Töngür: Akdeniz University

No 1668, Working Papers from Economic Research Forum

Abstract: This paper analyzes the impacts of logistics performance on environmental degradation for a panel of 20 Middle East and North Africa (MENA) economies over the period 2007-2018. In this context, logistics performance is measured by Logistics Performance Index (LPI) and its sub-indices developed by World Bank (2002), and environmental degradation is measured by CO2 emissions and ecological footprint. Apart from LPI, variables such as income per capita, trade openness, industrialization and renewable energy consumption are also considered determinants of environmental degradation in the study. The empirical findings of this study suggest that the improvement in logistics performance contributes to environmental degradation rather than environmental sustainability for oil-rich MENA countries, while insignificant for non-oil-rich MENA countries. Moreover, our results show that having higher LPI and its sub-indices does not necessarily represent better green logistics, i.e. environmental-friendly logistics, performance in the MENA region. Therefore, considering the environmental effects of logistics performance, the necessity of logistics regulations such as encouraging the protection of natural resources, and implementation of green logistics practices is evident.

Pages: 30
Date: 2023-11-20, Revised 2023-11-20
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