Evaluation models for the impact of pricing factor on environmental performance in different countries
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Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
LLC “Consulting Publishing Company “Business Perspectives”
Abstract
The need to increase the price of non-green, carbon-emitting goods, as well as the application
of new environmental taxes and fees to help solving the global climate crisis,
has been actively discussed. However, price is not only a strong impetus for market development,
but it can also restrain growth. The price level and population purchasing
power belong to the key indexes that define the market capacities in different countries.
This paper aims to investigate the impact of income inequality, including price levels
and purchasing power, on environmental performance in different countries. The research
method is based on RapidMiner’s machine learning programs, applying three
modeling algorithms: correlation, clustering, and decision trees with a static index database
of more than 150 countries around the world. The results obtained partially confirm
the conclusions made by other researchers studying the Environmental Kuznets
concept (EKC) effects. In particular, it was found that an important factor influencing
the efficiency of the environment in the country’s ecosystem is the level of population’s
income. The analysis also shows that environmental performance is strongly dependent
on domestic price levels. This may support the hypothesis that the cost of green
goods reflects a high benchmark for natural resource costs. However, further research
is needed, including such directions as sources of financing for the implementation of
circular projects, as well as the associated economic and environmental effects.
Description
Keywords
environmental performance, purchasing power, circular economy, k-means model, decision tree
Citation
Evaluation models for the impact of pricing factor on environmental performance in different countries / Viktoriia Apalkova, Sergiy Tsyganov, Nataliia Meshko [et al.] // Problems and Perspectives in Management. – 2022. – Vol. 20, Iss. 2. – P. 135–148.