The Economic Growth & Environmental Degradation Nexus in Algeria Using the Fuzzy Logic

310 Pages·2017·6.53 MB·English

People’s Democratic Republic of Algeria
Ministry of Higher Education and Scientific Research
University of Abou-Bekr Belkaid- Tlemcen

Faculty of Economics, Commercial and Management Sciences
Thesis submitted to the Department of Commercial Sciences in fulfilment of the Degree of
Doctorate in International Commerce

The Economic Growth & Environmental Degradation
Nexus in Algeria Using the Fuzzy Logic

Submitted by: Supervised by:
LEMTAOUCH Latifa Pr. AKACEM Omar
Board of Examiners:
Pr. BENBOUZIANE Mohamed University of Tlemcen Chairman
Pr. AKACEM Omar University of Adrar Supervisor
Pr. BOUTELDJA Abdenacer University of Tlemcen Examiner
Pr. BENSAID Mohamed University of Sidi Bel Abbes Examiner
Pr. DERBAL Abdelkader University of Oran Examiner
Dr. CHAKOURI Sidi Mohamed University Center of Maghnia Examiner

Academic year:2017-2018
Dedication
This project is essentially dedicated to our beloved bounteous land Algeria. I am
immensely thankful to my notable teacher, colleague and supervisor Professor Akacem
Omar for his guidance; pieces of advice, patience and encouragement throughout the
preparation of this work, without your help, this work would not be accomplished. I am
also eternally indebted to my distinguished teacher and assistant supervisor Doctor
Cheikh Saous for his remarks and instructive criticism; his substantial help and
consultations have pushed me to successfully conduct this scientific research. I am
especially thankful to the various scholars who instructed me to complete the current
project, especially Professor Researcher Arnold F. Shapiro for providing me with
invaluable resources of information. Finally, I deeply express my gratitude to my
colleagues, students, friends and family members for their constant moral support,
especially my dearly treasured husband, Abd El Aziz, who values knowledge as a
scholar should; my beloved parents for their constant support, my brothers and sisters
and my all my friends, especially Zineb and Hadjer. May-Allah bless all of you.

I
Acknowledgements
I am grateful to Allah the Almighty who enabled me and gave me patience to
accomplish this work. This thesis has been accomplished under the supervision of
Professor Omar Akecem and the assistive supervision of Professor Cheikh Saous, and I
hereby would like to cordially acknowledge their bounteous, friendly and helpful spirit
of support. The wise and hard-working teachers and scholars who have influenced me
throughout my life have been brilliant enthusiastic and goal-oriented mentors; I dedicate
this work to all of them with my deeply cordial appreciation, especially my supervisors,
hoping that their vision has been at least partially realized.
I also would like to acknowledge all those who have helped me in this project. I am
especially thankful to those who evaluated my proposal and those who assisted in giving
me hope, moral support and self-confidence. I reserve my final thanks to all my friends
and family members, thank you, may God have me able to make all of you proud one
day.

II
صخلم
ردصم داصتقاك رئازجلا يف يئيبلا روهدتلاو يداصتقلإا ومنلا نيب ةقلاعلا ليلحت ةساردلا هذه تلوانت
يف يئيبلاو يداصتقلاا عضولا ةساردل يليلحتلا جهنملا مادختسإب لاوأ ،ثحبلل نييجهنم للاخ نم كلذو طفنلل
ةقيرط :ةيلاتلا ريدقتلا قرط فيظوتب كلذ و يمكلا جهنملا مادختسإب ايناث .كلذل ةمئلاملا تارشؤملا لامعتساب رئازجلا
ىرغصلا تاعبرملا ةقيرط و )1982( اكانات ةقيرط مادختسإب يبابضلا رادحنلإا ، ةيداعلا ىرغصلا تاعبرملا
. 2013-1970 ةرتفلل رئازجلا يف ءاوهلا ثولتل يئيبلا ستنزوك ىنحنم ةيرظن رابتخإ لجأ نم كلذ و ةيبابضلا
عم قفاوتت يتلا و ةحيحصلا تاراشلإا اهل ريدقتلا يف ةلمعتسملا قرطلا لك نا ىلإ ريشت اهيلا لصوتملا جئاتنلا
ةبلاسلا ةراشلإا .يداصتقلإا ومنلا و يئيبلا ثولتلا نيب ةبولقم U لكش حرتقيام يئيبلا ستنزوك ىنحنم ةيضرف
دنع درفلل نوبركلا ديسكا يناث تاثاعبنا نع يداصتقلاا ومنلا لصف ىلع لدت يقيقحلا يدرفلا لخدلا عبرمل
قرطلا ىلع ريدقتلل )1982( اكانات ةقيرط تقوفت ،اهيلا لصوتملا ريدقتلا جذامن ةنراقم دعب .ةعفترم لخد تايوتسم
اديدحت رئازجلا عضو يفو ةساردلا هذه يف اهيلا لصوتملا تاجاتنتسلإا .ريدقتلا أطخ ليلقت يف ةلمعتسملا ىرخلأا
ىلإ ابنج ةموكحلل ةيسيئرلا ةيولولأا وه عفترم يداصتقإ ومن لدعم ىلا يعسلا نوكي نأ نامضو ةيمهأ ىلع دكؤت
.يرئازجلا عمتجملا ةيهافر نامضل ةيئيبلا تاسايسلا عم بنج
.ريدقتلا قرط ،ءاوهلا ثولت ،يداصتقلاا ومنلا ،يئيبلا ستنزوك ىنحنم ،رئازجلا :ةيحاتفملا تاملكلا

III
Abstract
This study explores and analyzes the relationship between the economic growth
and the environmental degradation in an oil exporting economy i.e. Algeria; through
two methodological approaches. Firstly, the study analyzes the economic and the
environmental situation in Algeria using the economic and environmental indicators.
Second, it employs several estimation methods; the ordinary least square estimation
method (OLS), Tanaka (1982) fuzzy regression method and the Fuzzy least square
regression (FLSR) estimation method, in order to test the validity of EKC hypothesis in
Algeria for air pollution during the period 1970-2013. All the estimated models have the
correct signs, which are consistent with the EKC hypothesis. This suggested an inverted
U-shaped relationship between economic growth and environmental degradation. The
negative sign of squared term of income seems to validate the break of CO emissions
2pc
and real GDP at the higher levels of income. Through the conducted comparison
pc
between the used estimating methods, it has been realized that the Tanaka method is
superior to other estimation methods in the sense of reducing the errors. The findings of
this study recommends that, in the case of Algeria, ensuring a high economic growth
rate should be the main priority of the government along with environmental policies to
ensure the welfare of the Algerian society.
Keywords : Algeria, Environmental Kuznets Curve, economic growth, air pollution,
estimation methods.

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Résumé
Cette étude explore et analyse la relation entre la croissance économique et la
dégradation de l'environnement dans une économie exportatrice de pétrole ; l’Algérie ; à
travers deux approches méthodologiques. Premièrement, l'étude analyse la situation
économique et environnementale en Algérie en utilisant les indicateurs économiques et
environnementaux. Deuxièmement, cette étude utilise plusieurs méthodes d’estimation ;
la méthode des moindres carrés ordinaires (MCO), la méthode de régression floue de
Tanaka (1982) et la méthode d'estimation de régression des moindres carrés floues, afin
de tester la validité de l'EKC (la Courbe Environnementale de Kuznets) hypothèse en
Algérie concernant la pollution de l'air pendant la période 1970-2013. Tous les modèles
estimés ont les signes corrects, qui sont cohérents avec l'hypothèse d'EKC. Cela a
suggéré une relation en forme de U inversé entre la croissance économique et la
dégradation environnementale. Le signe négatif du terme carré du revenu valide la
rupture entre les émissions de CO2pc et la PIBpc réelle aux niveaux des revenus les
plus élevés. Apres la comparaison entre ces méthodes d'estimation utilisées, on a réalisé
que la méthode Tanaka est supérieure à d'autres méthodes d'estimation dans le sens
qu'elle réduit les erreurs. Les résultats de cette étude conclue que, dans le cas de
l'Algérie, assurer un taux de croissance économique élevé devrait être la principale
priorité du gouvernement ainsi que la politique environnementale afin d’assurer le bien-
être de la société algérienne.
Mots Clés : L’Algérie, la courbe environnementale de Kuznets, croissance
économique, pollution de l’aire, méthodes d’estimation.
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Table of Contents
Dedication………………………………………….........................................................I
Acknowledgements………………………………….....................................................II
Abstract in Arabic……………………………..………………….……………….…..III
Abstract in English…………………………….………………….…………………..IV
Abstract in French…………………………………………………….……………….V
Table of Contents……………………………………...................................................VI
List of Tables ……………………………………………………………………….......X
List of Figures ………………………………………………………………………...XII
General Introduction…………..………………..….......................................................1
Chapter One: The Conceptual Framework of the Environment………….………...15
Chapter Introduction……………..……………………………………………..………15
1.1. The Environment and Its Concepts……………………………………...…….16
1.1.1. The Definition of Environment…………………………………………..……16
1.1.2. The Main Components of Environment……………………………….…........17
1.1.3. Commoner Law and Ecological Concepts and Their Functions…….…………24
1.2. The Environmental Pollution………………………………………………….33
1.2.1. The Definition, Causes and the Formation of Pollution……………....……….33
1.2.2. Pollution Types, Flows, Stocks and the Global Worming……………………..37
1.2.3. The Economic Measurement of Pollution, Its Impact Assessment and Control
Tools……………………………………………………………………...…………50
1.3. The International Environmental Conventions…………………………….….62
1.3.1. The Development of International Environmental Policy…………………..…62
1.3.2. Main International Environmental Agreements……………………………….66
1.3.3. Ratification of Major Multilateral Environmental Agreements…………….…73
Chapter Conclusion……………………………………………………………………..75
Chapter Tow: Theoretical Analysis of the Relationship between Economic Growth
and Environmental Degradation……………………………………………………..76
Chapter Introduction………………………………………………………………........76
2.1. The Definition and Measurement of Economic Growth………………..……...77
2.1.1. Definition of Economic Growth and Economic Development………………...77
VI
2.1.2. Measurement and Types of the Economic Growth………………………….…82
2.1.3. The Four Pillars of Economic Growth…………………………………………83
2.2. The Theoretical Fundaments of the Economic Growth………………………..86
2.2.1. Naturalism and Mercantilism Theories in the Economic Growth……………..86
2.2.2. The Classical and Neo-classical Theories in the Economic Growth…………...89
2.2.3. The Growth Theory of Keynes and Those After Him…………..……………...97
2.3. Analysis of the Relationship between Economic Growth and Environment…101
2.3.1. Environment in Traditional Economic Growth Thought…………………......101
2.3.2. Environment in Modern Economic Thought…………………………………107
2.3.3. The Relationship between the Economic Growth and Environmental
Degradation under EKC Hypotheses……………………………………….…........114
Chapter Conclusion……………………………………………………………………123
Chapter Three: The Economic and Environmental Situation in Algeria…………124
Chapter Introduction…………………………………………………………….…….124
3.1. The Economic Growth in Algeria……………………………………….….….125
3.1.1. Economic Growth Experiences in Algeria…………………………….……125
3.1.2. Evaluation of Economic Reforms…………………………………...……...131
3.1.3. The Environment in Algerian Development Agenda…………………….…136
3.2. The Environmental Situation in Algeria…………………………………….…138
3.2.1. Some Social and Environmental Indicators about Algeria…………………...138
3.2.2. The Environmental Pollution in Algeria…………………………..…………147
3.3. The Local Environmental Laws in Algeria………………………………….…163
3.3.1. The Evolution of Environmental Institutions and Environmental Laws in
Algeria…..................................................................................................................163
3.3.2. Environmental Taxation in Algeria……………………………………..……166
3.3.3. International Environmental Conventions and Agreements Approved by
Algeria......................................................................................................................168
Chapter Conclusion…………………………………………………….……………...172
Chapter Four: Estimation Methods………………………………….………….….174
Chapter Introduction………………………………………………………………..…174
4.1. The Classical (Crisp) Sets and Fuzzy Sets…………………………………..…175
VII
4.1.1. Crisp Sets and the Operations on Them…………………………………...….175
4.1.2. Fuzzy Sets and the Operations on Them……………………………...…...….187
4.2. Traditional Regression Analysis……………………………..………………..201
4.2.1. Origin and Definition of the Term Regression………………………….....…201
4.2.2. Types of Regression…………………………………………….………....…202
4.2.3. Ordinary Least Square Estimation Method………………………….……….205
4.3. Fuzzy Regression……………………………………………………...………210
4.3.1. Origin and Definition of Fuzzy Regression………………….…………….....211
4.3.2. Fuzzy Regression Methods…………………….…………….………………212
4.3.3. Fuzzy Regression Vs Traditional Regression……………………….……….219
Chapter Conclusion...………………………………………………………………….223
Chapter Five: Estimation Results and Discussion……………………...………….224
Chapter Introduction……………………………………………………………..……224
5.1. Data Description and Model Specification………………..…………………..225
5.1.1. Data Description………………………………….……………………….…225
5.1.2. Model Specification……………………………………............…………….227
5.2. The Estimation of EKC for air pollution in Algeria Using OLS Method……...227
5.2.1. The OLS Methodological Approach……………………………………..…..228
5.2.2. Empirical Results and Their Statistical Tests………………………….……..228
5.3. The Estimation of EKC Using the FR Tanaka Method………………………..238
5.3.1. The Methodological Approach of the FR Tanaka Method………………...…238
5.3.2. The Empirical Results and Their Statistical Tests……………………..……..243
5.4. Fuzzy Least Square Regression………………………………………………..245
5.4.1. The FLSR Methodological Approach to Estimate the EKC Model…..............245
5.4.2. The Empirical Results for EKC Using FLSR Method and the Statistical
Tests..........................................................................................................................246
5.5. The Comparison of the Estimated Models and the Economic Results’
Discussion……………………………………………………………………………..249
5.5.1. The Comparison between the Used Estimation Methods………….…………250
5.5.2. Economic Results’ Discussion…………………………………………..…...252
Chapter Conclusion……………………………………………………...…………….256
VIII
General Conclusion……………………………………………….………………….257
Bibliography….………………………………………………………………………262
List of Appendices …………………………………………………………………...282

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