An Analysis of Relationship between Environment Quality and Economic Development (A Comparative Study of USA and India)

Economic Development is not just development of economy but include social, political, cultural, institutional and environment development too. However, environment was never among the factors affecting economic development. As development concept evolved, importance of environment is realised. Still economic growth relationship with environment is considered for analysing sustainable development and not the economic development relationship. This paper thus discuss about the relationship between economic development and environment quality by focusing on India and USA. Apart from checking the existence of EKC Analysis in both countries, the turning point in each country is also derived. This shows the level of economic development required for having a positive contribution in environment. In order to represent economic development some variables like urbanisation, population, deforestation, GDP and coal consumption are selected via literature review and Ecological Footprint is used to represent environment degradation. Results of this analysis shows that India is very from the level of development required improving environment and it strictly needs actions to enhance the development of its economy without hampering environment. However, USA has already crossed this level and now is engaged in activities required to improve environment quality. Apart from this USA, also need to contribute in developing the economies far from this level.