Economic growth and environmental pollution in the USA and Russia: comparative spatial-econometric analysis

Economic growth is one of the most important characteristics of social production in any economic system. After the industrial revolution, the countries of the world are striving to achieve ever higher rates of economic growth through the use of existing including non-renewable, natural resources (Jian et al., 2019). This leads to forest destruction, disappearance of rivers, sea pollution, decrease in drinking water quality, large-scale changes in land use, increase in greenhouse gas emissions, especially carbon dioxide (СО2), which plays an important role in global warming and ozone layer destruction1. It is worth noting that the saturation of carbon dioxide in the Earth’s atmosphere over the previous 150 years has increased from 280 to 400 ppm (particles per million), such a high level has not been observed over the previous 400 thousand years2. During the 20th century, the average global surface temperature increased by 0.6 °C, sea level rose by 10–20 cm, snow cover and ice extent decreased by 10% (Canas et al., 2003). Thus, at present, humanity faces two most important tasks – sustainable economic development and environmental conservation.

Economic progress, carried out through progressive economic development, is one of the factors in the country’s development and represents economic growth, characterized by the following indicators: growth of gross domestic product and per capita income, growth of industrial production and labor productivity, changes in the social structure and the economy as a whole, the availability of sales markets and others (Zhuravleva et al., 2017). At the same time, carbon monoxide emissions into the atmosphere have an impact on economic growth. Accordingly, in order to achieve sustainable development, we should take into account the relationship between economic activity and environmental quality (Shikwambana et al., 2021).

The most widely used method of analyzing the relationship between economic growth and environmental pollution is the environmental Kuznets curve, an inverted U–shaped dependence of emissions on economic growth, considered in the work (Grossman, Krueger, 1991).

The environmental Kuznets curve (EKC) was presented in the World Development Report (1992) as a relationship between the concentration of sulfur dioxide in the environment and GDP per capita in 47 cities, located in 31 countries3. The EKC corresponds to an inverted U-shape of the relationship between income and concentration of sulfur dioxide.

The theory of the environmental Kuznets curve is based on the effect of the transition from agricultural to industrial production. As industrial production in urban areas becomes more intense, environmental pollution increases. With an increase in the income level, heavy industry is gradually being phased out in favor of more high-tech production. This transition should reduce environmental pollution. Thanks to high-tech and efficient production, emissions are reduced and the demand for a clean environment from consumers increases, and there is also a high political interest in the environment well-being (Dinda, 2004).

In the work, we will carry out a comparative analysis of the issue of the relationship between emissions and economic growth on the example of the USA and Russia. According to the World Bank, the United States and Russia occupy the leading places in terms of pollutant emissions per capita, ahead of China, the European Union and India4. The USA is one of the most developed economies in the world, Russia is an emerging market country, and therefore, the economic model of their GDP formation is different. However, at the same time, according to the level of pollutant emissions per capita, the countries are located in neighboring positions. Thus, due to the urgency of the environmental pollution problem for Russia and the USA, the purpose of the study is to conduct a comparative analysis of the relationship between emissions and economic growth on the regional data of Russia and the USA.

To achieve this purpose, we have solved the following research tasks: we have carried out a comparative analysis of environmental problems in Russia and the United States, estimated spatial correlation in terms of pollutant emissions on regional data for the United States and Russia, tested the hypotheses about the existence of the Environmental Kuznets Curve in the two countries at the regional level, identified factors of reducing the environmental burden, and noted development trends environmental politics in the USA and Russia.

Further, it is necessary to note the works that served as a starting point for our research.