The Effect of Environmental Deterioration and Socio-Cultural Factors on Economic Sustainability in Asia Pacific Selected Countries

Abstract

Many studies and scholars focus on the impact of climate change and pollution on economic green growth, linked to cultural variables. The discussed socio-cultural factors are measured by World Values Surveys, and environmental deterioration presented as different types of pollution are both independently essential for economic sustainability. The article refers to the socio-cultural index and sustainability. Environmental deterioration index as calculated by principal component analysis; Socio-cultural index formed by culture dimensions most of them mentioned by Hofstede (1980) such as masculinity, individualism and power distance; also, social development, and life expectancy and education level. Based on Environmental Kuznets Curve, there is a strong linkage among environmental degradation and income level. This paper applies Panel data by using generalized least square estimation; due to the existence of heteroskedasticity and serial correlation validate by Durbin-Watson test and Breusch-Pagan test respectively. The data was taken from World Value Surveys and European Value Surveys for Hofstede dimensions; World Bank such as GDP per capita, FDI, life expectancy at birth, tertiary school enrollment, and land pollution; and BP statistics of world energy for CO2 over years 2000–2022. The results show negative causal relationship between socio-cultural and economic sustainability and, a positive impact of environmental deterioration on economic.