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

Environmental performance and quality as main factors of preservation of life, has been affected by human activities and performance. Therefore, identifying the factors affecting it can be appropriate tool to policymakers and planners to achieve economic sustainable growth. 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 countries during 2002-2012. In this research, 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 efficiency and effectiveness of government, quality of legal, legal sovereignty and political stability have positive effect to improvement of countries position in environmental performance index. In this study, improvement of political condition caused to the promotion of environmental quality. On the other hand, economic growth and population increase are reasons of environmental degradation. Regard to results, to achieve the sustainable economic growth should be used to tax tools and reform and legislation of law to conservation of environment suggested.