A Study of Co-variation and Convergence of Alternative Measures of Sustainability on the Basis of Panel Data

The study highlights the need for creating alternative indicators of sustainability for considering a well guarded view about sustainable development of a country. The aim of the study is (1) to focus on different alternative measures of sustainability, (2) to assess whether these alternative measures move in the same direction which indicates peoples' wellbeing as well as maintenance of environmental health and (3) to ascertain whether there has been some tendency towards convergence among the considered countries based on the alternative sustainability measures. Four alternative sustainability indicators like Green Net National Product, Ecological Footprint, Sustainable Human Development Index and Pollution Sensitive Human Development Index, for 22 developing countries have been constructed. Correlation matrix has been considered to focus on the extent of consistency between alternative indices. Unit root test has been done to ensure the stationarity of time series of such indices. The issue of convergence of different sustainability indices has been analysed by use of beta and sigma convergence employing pooled OLS and fixed effect model. It has been found that the different indices are more or less mutually consistent and stationary and over time they have converged across the considered countries. The results indicate that despite convergence coherent with Environmental Kuznets Curve hypothesis, the level of environmental degradation when linked to GDP per capita gives rise to an N-shaped pattern. The study suggests the need for diverse economic pollution control instruments to avoid degradation of the environment.