Factors Affecting Environmental Performance Index (EPI) in Selected OPEC Countries

Nowadays, conservation, maintenance and monitoring of natural resources according to estimated benefits and costs, plays an important role in economic growth and sustainable development. Economic development along with environmental protection, while preserving economic competitiveness by providing eco-friendly technologies, will prevent of loss and waste of environmental resources. One of the most comprehensive and complete environmental indicators which today used to provide a clear and comprehensive picture of environment in each country is Environmental Performance Index (EPI). Therefore, the main purpose of this study is investigation of affecting factors on environmental performance index in selected OPEC countries during the period 2000-2012 by using panel data approach. The results show that governance index, internet users and natural resource abundance index variables have positive and significant effect and openness and the carbon dioxide emissions per GDP have negative and significant effect on environmental performance index in selected OPEC countries. Also the coefficient of human development index (HDI) is positive and insignificant and value added of industry sector is negative and insignificant.