Pollution and its Fiscal Echo: Quantifying the Impact of Environmental Factors on Government Debt
Abstract
In Mongolia, the postal and telecommunications sector is transitioning from a state service monopoly to a market characterized by perfect competition. Following the Covid-19 pandemic, there has been a surge in demand for delivery and dispatch services. Specifically, revenue within the postal industry witnessed a notable upswing, with increases of 26 percent in 2020, 39 percent in 2021, and 37 percent in 2022, respectively. This surge underscores a sharp rise in demand for parcel, shipping, and delivery services within the postal sector. Hence, within the postal sector of Mongolia, there exists a challenge to the expansion of e-commerce delivery services, the integration of novel electronic technologies, the enhancement of logistical service standards, and the systematic elevation of sectoral competitiveness. The primary objective of this research is to examine the factors influencing the competitiveness of companies within the postal sector by employing M. Porter's Diamond model. Additionally, the study aims to identify the pivotal success factors crucial for enhancing the competitiveness of the postal sector in Mongolia. In assessing competitiveness, the study employs the comprehensive methodology of the Diamond model, which encompasses resource factors, demand factors, company strategy, structure, and organization, as well as related and supporting industry factors. Through this framework, the competitiveness of Mongolia's postal industry is analyzed across seven dimensions, comprising a total of 119 indicators. These dimensions include government support, human resources, and opportunities, among others. Subsequently, the findings are disseminated to reveal the outcomes of the assessment. The results revealed that the opportunity factor is the major important factor, on the other hand, the government factor was the less important factor for boosting the competitiveness of the postal company
References
- Akoglu, H. (2018). User's guide to correlation coefficients. Turkish Journal of Emergency Medicine, 18(3), 91–93. https://doi.org/10.1016/j.tjem.2018.08.001
- Atavullayeva, M. (2024). Environmental pollution monitoring: Essential strategies for mitigating ecological degradation. E3S Web of Conferences, 587, 02014. https://doi.org/10.1051/e3sconf/202458702014
- Bahrami, Z., Sato, S., Yang, Z., Maiti, M., Paoin, K., Umemura, T., Onishi, K., Terasaki, H., Nakayama, T., Matsumi, Y., Ueda, K., et al. (2024). The perception of air pollution and its health risk: A scoping review of measures and methods. Global Health Action, 17, 2370100. https://doi.org/10.1080/16549716.2024.2370100
- Barrage, L. (2020). The fiscal costs of climate change. AEA Papers and Proceedings, 110, 107–112. https://doi.org/10.1257/pandp.20201082
- Boly, M., Combes, J.-L., Menuet, M., Minea, A., & Combes Motel, P. (2022). Can public debt mitigate environmental debt? Theory and empirical evidence. Energy Economics, 111, 105895. https://doi.org/10.1016/j.eneco.2022.105895
- Bréon, F.-M., Boucher, O., & Brender, P. (2017). Inter-annual variability in fossil-fuel CO₂ emissions due to temperature anomalies. Environmental Research Letters, 12(7), 074009. https://doi.org/10.1088/1748-9326/aa693d
- Chang, J.-H., & Tseng, C.-Y. (2017). Analysis of correlation between secondary PM2.5 and factory pollution sources by using ANN and the correlation coefficient. IEEE Access, 5, 24051–24060. https://doi.org/10.1109/ACCESS.2017.2765337
- Chen, Z., Zhou, M., Ma, C., et al. (2022). Anti-corruption and corporate environmental responsibility: Evidence from China's anti-corruption campaign. Global Environmental Change, 72, 102449. https://doi.org/10.1016/j.gloenvcha.2021.102449
- Čhmú – Český hydrometeorologický ústav, Vaisková, L., Šůšková, H., Schraberová, M., Svačinová, L., & Chrástová, L. (2023). Kvalita ovzduší v ČR 2023: Předběžné hodnocení I. část: Hodnocení koncentrací PM10, PM2.5, O3, NO2, SO2 a CO [Air quality in the Czech Republic 2023: Preliminary assessment part I: Assessment of PM10, PM2.5, O3, NO2, SO2 and CO concentrations]. https://www.chmi.cz/files/portal/docs/uoco/mes_zpravy/Rocni_zprava_2023.pdf
- ČSÚ – Český statistický úřad. (2023). Výsledky zdravotnických účtů ČR 2010–2022 [Results of health accounts of the Czech Republic 2010–2022]. https://csu.gov.cz/produkty/vysledky-zdravotnickych-uctu-v-cr-20102022
- Dibley, A., Wetzer, T., & Hepburn, C. (2021). National COVID debts: Climate change imperils countries' ability to repay. Nature, 592(7853), 184–187. https://doi.org/10.1038/d41586-021-00871-w
- European Environment Agency. (2022). Emise skleníkových plynů v EU: Klíčové výzvy pro dosažení cíle 2030 [Greenhouse gas emissions in the EU: Key challenges for achieving the 2030 target]. https://www.eea.europa.eu/cs/highlights/emise-sklenikovych-plynu-v-eu
- Fareed, Z., Rehman, M. A., Adebayo, T. S., Wang, Y., Ahmad, M., & Shahzad, F. (2022). Financial inclusion and the environmental deterioration in Eurozone: The moderating role of innovation activity. Technology in Society, 69, 101961. https://doi.org/10.1016/j.techsoc.2022.101961
- Fodha, M., Segmuller, T., & Yamagami, H. (2018). Environmental tax reform under debt constraint. Annals of Economics and Statistics, 129, 33–52. https://doi.org/10.15609/annaeconstat2009.129.0033
- Fowler, D., Brimblecombe, P., Burrows, J., Heal, M. R., Grennfelt, P., Stevenson, D. S., Jowett, A., Nemitz, E., Coyle, M., Lui, X., Chang, Y., Fuller, G. W., Sutton, M. A., Klimont, Z., Unsworth, M. H., Vieno, M., et al. (2020). A chronology of global air quality. Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences, 378, 20190314. https://doi.org/10.1098/rsta.2019.0314
- Gao, G., Li, X., Liu, X., & Dong, J. (2021). Does air pollution impact fiscal sustainability? Evidence from Chinese cities. Energies, 14(21), 7247. https://doi.org/10.3390/en14217247
- Hájek, M., Zimmermannová, J., Heimann, K., & Rozenský, L. (2019). Analysis of carbon tax efficiency in energy industries of selected EU countries. Energy Policy, 134, 110955. https://doi.org/10.1016/j.enpol.2019.110955
- Halkos, G. E., & Paapageorgiou, G. J. (2018). Pollution, environmental taxes and public debt: A game theory setup. Economic Analysis and Policy, 58, 111–120. https://doi.org/10.1016/j.eap.2018.01.004
- Han, X., Xuelian, Z., & Kuang, X. (2023). The impact of haze pollution on Chinese local government debt. International Journal of Public Administration, 1–12. https://doi.org/10.1177/21582440231205467
- Hanusz, Z., Tarasinska, J., & Zieliński, W. (2016). Shapiro–Wilk test with known mean. Revstat Statistical Journal, 14, 89–100. https://doi.org/10.57805/revstat.v14i1.180
- Hendl, J. (2012). Přehled statistických metod zpracování dat: Analýza a metaanalýza dat [Overview of statistical methods for data processing: Data analysis and meta-analysis] (4th ed.). Portál.
- Hindls, R., Arltová, M., Hronová, S., Malá, I., Marek, L., & Pecáková, I. (2018). Statistika v ekonomii [Statistics in economics]. Professional Publishing.
- Irfan, M., Cameron, M. P., & Hassan, G. (2021). Interventions to mitigate indoor air pollution: A cost-benefit analysis. PLOS ONE, 16(9), e0257543. https://doi.org/10.1371/journal.pone.0257543
- Istiana, T., Kurniawan, B., Soekirno, S., Nahas, A., Wihono, A., Nuryanto, D. E., Adi, S. P., & Hakim, M. L. (2023). Causality analysis of air quality and meteorological parameters for PM2.5 characteristics determination: Evidence from Jakarta. Aerosol and Air Quality Research, 23(9), 230014. https://doi.org/10.4209/aaqr.230014
- Jalaluddin, S., Salimi, F., Sadeghi, M., Collie, L., & Morgan, G. (2021). Ambient air pollution and stillbirths risk in Sydney, Australia. Toxics, 9, 209. https://doi.org/10.3390/toxics9090209
- Kibiswa, N. K. (2019). Directed qualitative content analysis (DQlCA): A tool for conflict analysis. The Qualitative Report, 24(8), 2059–2079. https://doi.org/10.46743/2160-3715/2019.3778
- Kickhöfer, B., Agarwal, A., & Nagel, K. (2018). Mind the price gap: How optimal emission pricing relates to the EU CO2 reduction targets. International Journal of Sustainable Transportation, 13(5), 378–391. https://doi.org/10.1080/15568318.2018.1472321
- Kleinheksel, A., Tawfik, H., Wyatt, T., & Winston, N. (2020). Demystifying content analysis. American Journal of Pharmaceutical Education, 84, 127–137. https://doi.org/10.5688/ajpe7113
- Lelieveld, J., Klingmüller, K., Pozzer, A., Pöschl, U., Fnais, M., Daiber, A., & Münzel, T. (2019). Cardiovascular disease burden from ambient air pollution in Europe reassessed using novel hazard ratio functions. European Heart Journal, 40(20), 1590–1596. https://doi.org/10.1093/eurheartj/ehz135
- Li, A., & Qiu, J. (2024). Does local government debt promote firm green innovation? Evidence from the Chinese local government debt governance reform. Economic Analysis and Policy, 84, 1046–1062. https://doi.org/10.1016/j.eap.2024.10.010
- Li, W., Yang, G., & Li, X. (2021). Correlation between PM2.5 pollution and its public concern in China: Evidence from Baidu Index. Journal of Cleaner Production, 293, 126091. https://doi.org/10.1016/j.jclepro.2021.126091
- Liang, B., He, X., Du, X., Liu, X., & Ma, C. (2021). Effect of air quality on the risk of emergency room visits in patients with atrial fibrillation. Frontiers in Cardiovascular Medicine, 8, 672745. https://doi.org/10.3389/fcvm.2021.672745
- Majaski, C. (2024). Year-over-year (YOY): What it means, how it's used in finance. Investopedia. https://www.investopedia.com/terms/y/year-over-year.asp
- MFČR – Ministerstvo financí České republiky. (2024). Struktura a vývoj státního dluhu. https://www.mfcr.cz/cs/rozpoctova-politika/rizeni-statniho-dluhu/statistiky/struktura-a-vyvoj-statniho-dluhu
- Murray, C. J. L., Aravkin, A. Y., Zheng, P., Abbafati, C., Abbas, K. M., Abbasi-Kangevari, M., et al. (2020). Global burden of 87 risk factors in 204 countries and territories, 1990–2019: A systematic analysis for the Global Burden of Disease Study 2019. The Lancet, 396(10258), 1223–1249. https://doi.org/10.1016/S0140-6736(20)30752-2
- Nordhaus, W. D. (2017). Evolution of assessments of the economics of global warming: Changes in the DICE model, 1992–2017. Climatic Change, 148(4), 623–640.
- Ogebifun, L., Shobande, O. A. (2020). Debt sustainability and the fiscal reaction function: Evidence from MIST countries. Future Business Journal, 6(1), Article 33. https://doi.org/10.1186/s43093-020-00037-6
- Okoye, K., & Hosseini, S. (2024). Correlation tests in R: Pearson Cor, Kendall's Tau, and Spearman's Rho. In Methods for statistical analysis in R (pp. 981–997). https://doi.org/10.1007/978-981-97-3385-9_12
- Omer, A. (2024). Environmental pollution: A growing cancer risk in developing countries. Barw Medical Journal, 2(2). https://doi.org/10.58742/bmj.v2i2.97
- Papadaki, C., Lagogiannis, S., & Dimitriou, E. (2023). Preliminary analysis of the water quality status in an urban Mediterranean river. Applied Sciences, 13(11), 6698. https://doi.org/10.3390/app13116698
- Pattanaik, S. (2024). Environmental pollution. [Publication information not provided in the supplied reference.]
- Renbarger, R., Sulak, T., & Kaul, C. (2019). Finding, accessing, and using secondary data for research on gifted education and advanced academics. Journal of Advanced Academics, 30, Article 1932202X1986411. https://doi.org/10.1177/1932202X19864117
- Sakib, S., Sara, K., Rasel, T. H., Asif, M., Nahid, M. A., Rahman, M. S., & Islam, A. (2023). Time series analysis and forecasting of air quality index of Dhaka City of Bangladesh. In 2023 IEEE Artificial Intelligence and IoT Conference (AIoT) (pp. 63–69). https://doi.org/10.1109/AIoT58121.2023.10174539
- Tan, J., Chan, K. C., & Chen, Y. (2021). The impact of air pollution on the cost of debt financing: Evidence from the bond market. Business Strategy and the Environment. https://doi.org/10.1002/bse.2904
- Tomášková, E. (2023). Control of state debt in the Czech Republic. Białostockie Studia Prawnicze, 28, 245–258. https://doi.org/10.15290/bsp.2023.28.02.15
- Velásquez, R. M. A., & Lara, J. V. M. (2020). Gaussian approach for probability and correlation between the number of COVID-19 cases and the air pollution in Lima. Urban Climate, 33, 100664. https://doi.org/10.1016/j.uclim.2020.100664
- Volná, V., Seibert, R., Hladký, D., & Krejčí, B. (2024). Identification of causes of air pollution in the specific industrial part of the Czech city of Ostrava in Central Europe. Preprints. https://doi.org/10.20944/preprints202401.0229.v1
- Wang, A., Zhang, M., & Zhou, S. (2022). Air pollution, environmental violation risk, and the cost of debt: Evidence from China. International Journal of Environmental Research and Public Health, 19(6), 3584. https://doi.org/10.3390/ijerph19063584
- Xia, Q., Zhang, X., & Hu, Y. (2022). The superposition effects of air pollution on government health expenditure in China—Spatial evidence from GeoDetector. BMC Public Health, 22, 1411. https://doi.org/10.1186/s12889-022-13702-y
- Xie, H., Zhang, W. K., & Liang, H. Y. (2023). Can local government debt decrease the pollution emission of enterprises? Evidence from China's industrial enterprises. Sustainability, 15(11), 9108. https://doi.org/10.3390/su15119108
- Zhang, G., Ren, Y., Yu, Y., & Zhang, L. (2022). The impact of air pollution on individual subjective well-being: Evidence from China. Journal of Cleaner Production, 336, 130413. https://doi.org/10.1016/j.jclepro.2022.130413
- Zhao, Y., Peng, S., Zhang, Q., Wang, Y., Gong, C., & Lu, X. (2024). Land finance, local government debt and economic green transformation. Land, 13(7), 975. https://doi.org/10.3390/land13070975
- Zvara, K. (2019). Regrese (2nd ed.). MatfyzPress.