Does Poverty Cause Environmental Degradation? Evidence from Developing Countries

Abstract

Environmental quality has been decreasing in most countries in the world. With poverty is the primary attribute of most developing countries, this study aims to examine the effect of poverty on environmental deterioration by using panel data of 50 developing countries for the period between 2001 and 2014. Utilizing the generalized method of moments, findings establish that poverty is among the principal sources of environmental damage across the countries. Therefore, the efforts to reduce environmental degradation must be comprehensive enough and the priority of environmental policies should in the first place, targeting poverty reduction.