Relationship Between Green Future and Well-Being Indices: Canonical Correlation Analysis


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Akdağ N., Veysikarani D.

7th International Conference on Economics and Finance Future Economic Order: Challenges in Economics in the Face of Climate Changes, Energy Bottleneck and Warfare Online Conference, (Oct. 5 -6 2023), İstanbul, Turkey, 5 - 06 October 2023, pp.177-178

  • Publication Type: Conference Paper / Summary Text
  • City: İstanbul
  • Country: Turkey
  • Page Numbers: pp.177-178
  • Istanbul Gelisim University Affiliated: Yes

Abstract

The Green Future Index and Legatum Prosperity Index focus on examining the relationship between sustainable development and well-being in OECD countries, aiming to understand how to optimize this relationship and comprehend the connection between these indices.  "How do the Green Future Index and Legatum Prosperity Index affect sustainable development and well-being in OECD countries, and how can the relationship between these two indices be understood?" This question aims to investigate what the Green Future Index and Legatum Prosperity Index mean for OECD countries in terms of sustainable development and well-being, and how these indices can be evaluated together. This research aims to make an original contribution by bringing together relatively underexplored indices such as the Green Future Index and the Legatum Prosperity Index and examining the relationship between them using a previously unused analysis method, canonical correlation analysis.. This study adopts canonical correlation analysis as a research method to examine the relationship between sustainable development and well-being using 2023 data from the Green Future Index and Legatum Prosperity Index. Canonical correlation analysis is a powerful multivariate statistical method used to uncover complex relationships between two or more sets of variables and identify the highest correlations between these variables. The study will process the obtained data using canonical correlation analysis, and the results of this analysis will explain the relationship between the Green Future Index and the Legatum Prosperity Index. The results of canonical correlation analysis provide an important perspective on understanding the complexity of sustainable development and well-being by identifying the highest correlations between . It was found that there are stronger relationships in specific subgroups between the components of the Green Future Index and the components of the Legatum Prosperity Index. These subgroups include areas where environmental sustainability and economic prosperity are more closely related. Future research can conduct a more in-depth analysis of the relationship between the Green Future Index and the Legatum Prosperity Index, including a more detailed analysis of the indicators used in these indices.

JEL Classification: C12, D60, Q50.

Keywords: Green Future Index, Legatum Prosperity Index, Canonical Correlation Analysis.