Logistic and environmental quality

Abstract

Logistic performance has been improved tremendously in many parts of the world. Nonetheless, its improvement does not necessarily guarantee that environmental quality can be preserved. Hence, it is the objective of this study to examine the effect of logistic improvement on environmental degradation in developing countries. Applying dynamic panel model estimator for a panel of 50 developing countries for the period between 2010 and 2016, this study observes that the level of pollution tends to be higher with a higher level of logistic performance. The findings show that developing countries that did not adopt green practices on logistic performance pose negative effects in terms of air pollution, climate change, and global warming. Thus, the efforts to reduce environmental degradation must be comprehensive enough and the priority of environmental policies should be in the first place, targeting logistic performance. In other words, performance measure of logistic should also take into account its contribution to environmental quality.