International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

The Impact of Investment in Industrial Sector on the Environmental Degradation in Jordan
Basem M. Hamouri

Many international empirical studies have concentrated on the impact of industrialization and economic development on environmental degradation. This study adopted an analytical approach, using the ordinary least squares (OLS) method, in order to study the industrialization and its effect on the environment quality by examining Jordan economy to verify that the higher levels of industrial growth, led by enormous investments, are creating imbalances in the environment. We noted that the effect of each independent variable represented by industrialization, population density, number of vehicles and real GDP on the dependent variable, which are represented by CO2 emissions from fossil fuel consumption (Carbon dioxide emissions), are positive. This result is not eccentric since it matches many literature findings especially those applied on developing countries. It is worth mentioning that the industrial sector in Jordan is still undersized and witnessed a rapid growth rate, in addition to a transformation from traditional to moderate technology utilization. However, the impact of population density on the CO2 emissions has the highest significance compared with other variables. This might be an outcome of the high rate of population growth in addition to the migration of Palestinians from Kuwait in the year 1990, followed by Iraqi and Syrian refugees.

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