Income Elasticity of Resource Depletion in the Philippines, Indonesia, and Thailand: 1998–2013

Krystel Kaye Tan Lee; Gerard Lim Go

Krystel Kaye Tan Lee School of Business and Economics, University of San Carlos
Gerard Lim Go School of Business and Economics, University of San Carlos

Keywords: elasticity, income, natural resource depletion, Philippines, Indonesia, Thailand

Abstract

This study estimated the degree of sensitivity and the type of relationship between the growth in income and the depletion of energy, mineral, and forest resources while considering population density, foreign direct investments, and tourism for the Philippines, Indonesia, and Thailand from 1998 - 2013. The study used descriptive and inferential statistics in data analysis with net resource depletion as the dependent variable and income per capita, foreign direct investments, population density, and tourism as explanatory variables.

Ordinary Least Squares (OLS) estimations provided that the Philippines and Thailand were relatively unsustainable with positive elasticity while Indonesia was slightly sustainable with positive inelasticity. An inverse U-shaped relationship was concluded only for the Philippines; however, panel analysis did not statistically support such a relationship. The results of the study were used to provide general policy recommendations aligned with the Sustainable Development Goals.

Author Biographies

Krystel Kaye Tan Lee, School of Business and Economics, University of San Carlos

Krystel Kaye Lee received her Bachelor’s degree in Management with cum laude honors from the University of the Philippines in Cebu in 2011. She earned her Master of Arts degree in Economics at the University of San Carlos in 2016. Her work experience mainly involved banking and finance as a Junior Relationship Manager handling financial investments from 2012 to 2016. She was also in the field of marketing with professional and freelance work from 2011 to 2016. She is currently attending Aletheia University in New Taipei City, Taiwan, under the Master of Science in Business Administration program.

Gerard Lim Go, School of Business and Economics, University of San Carlos

Gerard Lim Go earned his Bachelor of Arts degree in Economics with summa cum laude honors at the University of San Carlos in 1987. He took his Master of Arts in Economics at the University of Georgia in 1990. He has taught Economics at the University of San Carlos since 1994. He handles both undergraduate and graduate courses in Mathematical Economics, Econometrics, Microeconomics, and Managerial Economics. He is also involved in various researches in the fields of Industrial Organization and Business Economics. Outside the academe, he is an entrepreneur in the food and real estate industry.