The Influence of Sustainable Socio-Economic Factors on Environmental Efficiency: An International Analysis During Turbulent Periods

This research examines the impact of formal institutions, the human development index (HDI), technological progress, and trade openness on the environmental performance of various countries. The study applies a Bayesian data envelopment analysis (DEA) approach to measure environmental performance, offering consistent estimates while addressing issues of sampling bias and dimensionality, particularly given the limited sample of 56 countries (31 developed and 25 developing). The analysis employs a two-step generalized method of moments (GMM) to evaluate the influence of these factors over two periods: 2011-2019 (a period free from major global crises) and 2011-2020 (which includes the COVID-19 pandemic). The findings reveal that key drivers of environmental performance include prior environmental outcomes, country classification (developed vs. developing), corruption control in developing nations, and the HDI, which plays a more significant role during global crises, especially for developing countries.