Oleksandr Vasylovych Kubatko

Were Ukrainian regions too different to start interregional confrontation: economic, social and ecological convergence aspects?

Abstract This article deals with analysis of economic, social and ecological disparities of Ukrainian regions. Regional economic disparities are measured through the convergence concept and the article employs panel data analysis with fixed and random effects estimations. Our empirical results show the presence of economic convergence in Ukrainian regions. Initially it was found that poor regions do grow relatively faster than the rich. Moreover, the difference between poor and rich regions has been decreased 1.8 times during 1999 and 2010. In addition, it was found that the presence of ecological convergence in the Ukraine and initially ‘clean’ regions do increase pollution faster than initially ‘dirty’ regions. That is, Ukrainian regions were converging to some environmental steady state through the process of increasing pollution. Ukrainian regions were also experiencing health convergence with negative policy implications, since all regions do converge to some health levels through an increase in morbidity. The economic growth of Ukrainian regions was achieved through sacrificing environmental situations and increased morbidity. Therefore, there were no clear economic reasons to start interregional confrontation that has taken place in the Ukraine, since all regions were on the same track of development.

Economic estimations of air pollution health nexus

This paper estimates the influence of air pollution on population health outcomes through measuring direct and indirect pollution health effects. Multiple group studies show that air pollution increases population morbidities. The wealthy–health endogeneity link is discussed, and omitted variable biases of health impact assessments are addressed. Hausman specification test for regional panel data was performed, and the results were in favor of fixed effect estimations. The obtained data for 25 regions in Ukraine result that air emissions are causality factor for 10.3% of cardiovascular disease (CVD); 11% of gastrointestinal morbidity, 16% of respiratory morbidity, 10.5–30% of the lung cancer in industrial populations. Air pollution does not increase incidents of alcoholism and alcoholic psychosis, rubeola (measles), and diabetes. Average age, urbanization, and alcohol consumption are positive and significant factors in all CVD morbidity regressions. Total economic costs attributed to air pollution and selected morbidities range from 0.7 to 1.3% of the regional gross product (1.14–2.12 billion of USD). To internalize air pollution externalities, all air pollution taxes have to be raised up to 7–13 times to reach the level of Pigovian taxes.