Analysis of the Lockdown Effects on the Economy, Environment, and COVID-19 Spread: Lesson Learnt from a Global Pandemic in 2020
Abstract
:1. Introduction
2. Literature Review
2.1. Impact of COVID-19-Induced Lockdowns on the Environment
2.2. Impacts of COVID-19 Induced Lockdowns on the Economy
2.3. Impact of COVID-19-Induced Lockdowns on the Number of COVID-19 Infections
2.4. Simultaneous Relationships among COVID-19 Spread, Economy, Environment
3. Data and Methodology
3.1. Data
3.2. Methodology
3.2.1. Spatial Autocorrelation
3.2.2. Simultaneous Spatial Kink Equations
- 1.
- Simultaneous spatial autoregressive kink equations (SSAKE)
- 2.
- Simultaneous spatial error kink equations (SSEKE)
- 3.
- Simultaneous spatial Durbin kink equations (SSDKE)
4. Results
4.1. Spatial Autocorrelation Test
4.2. Kink Effect Test
4.3. Comparison of Model Performance
4.4. Estimation Results from the Optimal Model
4.5. Direct and Indirect Effects of Lockdowns
5. Discussion
- The higher PM2.5 concentration, greater population density, and higher interest rate of one country will simultaneously create a negative impact on the GDP of its neighboring countries. However, a lockdown in one country was found to have no indirect spatial spillover effects on the neighboring countries.
- We found that the durations of lockdowns above 11.257 days per year in one country will reduce PM2.5 concentrations in the neighboring countries, and the more the number of lockdown days in a country, the better the air quality in countries nearby. Moreover, while economic development in one country was detected to have a positive spillover relation with PM2.5 concentrations in the neighboring countries, the greater trade openness of a country was found to also contribute to the poorer air quality of adjacent countries.
- Countries with a GDP per capita of more than USD 29,762.37 per year were shown to result in more cases of coronavirus infections in the close-by countries. This might reflect the fact that economic activities in the high-income economies (compared to Thailand, which has a GDP per capita of USD 5500–6000 per year) continued as in times of normalcy or with normal international labor and human movement during the COVID-19 pandemic, thus resulting in a high spatial spillover of disease spread [33]. Consequently, it might be reasonable to state that there is a trade-off between maintaining the status of a high-income economy and the larger number of COVID-19 infections due to both internal diffusion and cross-border transmission during this global pandemic.
6. Conclusions
7. Policy Recommendations
- To avoid economic damage, governments should impose a short-duration lockdown (no more than 31 days per year). However, the authorities need to consider the trade-off between economic loss and environmental benefit because more lockdown days can suppress the COVID-19-related panic and fatalities while causing minimum impact on the daily life of people in the society and because the environmental improvement can be pursued as the long-term goal instead. As the present study showed that lockdowns could not suppress the disease spread partly due to ineffective implementation in some countries, governments wishing to control the situation effectively might have to adopt more rigorous restriction measures for a shorter duration or use the complete lockdown alternative once imposed in Wuhan, China, while expediting the vaccination processes for the population.
- As evident from the spatial spillover study that lockdowns of more than 31.218 days per year in one country could improve air quality in the nearby countries, lockdowns or limitations on economic activities can be strategically employed by policymakers to rapidly and enormously reduce problems related to air pollution. However, the economic loss has to be taken into account in this connection by evaluating the non-monetary environmental benefits and whether the gain can compensate for the losses from shutting down some economic activities.
Author Contributions
Funding
Data Availability Statement
Acknowledgments
Conflicts of Interest
Appendix A
Afghanistan | Brunei | Guinea | India | Malawi | Oman | Somalia | Venezuela |
Albania | Bulgaria | Eritrea | Indonesia | Malaysia | Pakistan | South Africa | Vietnam |
Algeria | Burkina Faso | Estonia | Iran | Maldives | Panama | Spain | Zambia |
Angola | Burundi | Eswatini | Iraq | Mali | Papua New Guinea | Sri Lanka | Zimbabwe |
Antigua and Barbuda | Cambodia | Ethiopia | Ireland | Malta | Paraguay | Sudan | |
Argentina | Cameroon | Fiji | Israel | Mauritania | Peru | Suriname | |
Armenia | Canada | Finland | Italy | Mauritius | Philippines | Sweden | |
Australia | Chile | France | Jamaica | Mexico | Bhutan | Switzerland | |
Austria | China | Gabon | Japan | Mongolia | Poland | Tajikistan | |
Azerbaijan | Colombia | Gambia | Jordan | Montenegro | Portugal | Thailand | |
Bahamas | Comoros | Georgia | Kazakhstan | Morocco | Qatar | Timor | |
Bahrain | Costa Rica | Germany | Kenya | Mozambique | Romania | Togo | |
Bangladesh | Croatia | Ghana | Kuwait | Myanmar | Russian | Trinidad | |
Barbados | Cuba | Greece | Kyrgyzstan | Namibia | Sao Tome and Principe | Tunisia | |
Belarus | Cyprus | Guatemala | Lao | Nepal | Saudi Arabia | Turkey | |
Belgium | Czechia | Guinea | Latvia | Netherlands | Senegal | Uganda | |
Belize | Denmark | Guinea-Bissau | Lebanon | New Zealand | Serbia | Ukraine | |
Benin | Djibouti | Guyana | Lesotho | Nicaragua | Seychelles | UAE | |
Bhutan | Dominican | Haiti | Liberia | Niger | Sierra Leone | UK | |
Bolivia | Ecuador | Honduras | Lithuania | Nigeria | Singapore | USA | |
Botswana | Egypt | Hungary | Luxembourg | North Macedonia | Slovakia | Uruguay | |
Brazil | El Salvador | Iceland | Madagascar | Norway | Slovenia | Uzbekistan |
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Variable | Min | Max | Mean | SD | Description | Source |
---|---|---|---|---|---|---|
6.633 | 11.678 | 9.455 | 1.135 | Gross Domestic Product per capita (current USD) | https://m.statisticstimes.com/economy/countries-by-projected-gdp-capita | |
2.292 | 4.593 | 3.691 | 0.506 | Average PM2.5 concentration (µg/m³) | https://statisticstimes.com/economy | |
0.746 | 9.030 | 4.323 | 1.364 | Population density (people per km2) | https://knoema.com | |
4.158 | 11.978 | 9.541 | 1.805 | The number of COVID-19 confirmed cases (ratio with population). This variable can be viewed as COVID-19 incidence rate. | https://www.worldometers.info/coronavirus/ | |
−0.400 | 3.361 | 2.772 | 0.713 | Average temperature (Celsius) | https://www.weather-atlas.com/ | |
0.000 | 5.192 | 3.700 | 0.913 | Number of days in lockdown per year (Day) | https://graphics.reuters.com/world-coronavirus | |
3.060 | 4.542 | 3.948 | 0.269 | COVID-19 Recovery Index, which measures country’s success in treating patients that have been diagnosed COVID-19 positive | Global Infection Trend—Fu | |
−4.605 | 5.501 | −0.879 | 1.630 | Trade openness (Ratio with GDP) | https://countryeconomy.com/trade | |
−2.302 | 4.071 | 0.964 | 1.270 | Real interest rate (%) | https://tradingeconomics.com/country-list/interest-rate | |
−1.840 | 18.757 | 6.512 | 3.108 | Foreign direct investment (Million USD) | https://tradingeconomics.com/country-list/foreign-direct-investment |
Region | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
World | 0.155 *** | 0.515 *** | 0.578 *** | 0.664 *** | 0.154 *** | 0.180 *** | 0.071 ** | 0.052 * | 0.352 *** | 0.733 *** |
Asia | 0.335 *** | 0.674 *** | 0.335 *** | 0.345 *** | 0.154 *** | 0.180 *** | 0.060 * | 0.053 * | 0.290 *** | 0.567 *** |
Europe | 0.239 ** | 0.124 *** | 0.564 ** | 0.782 *** | 0.201 ** | 0.203 *** | 0.092 * | 0.033 * | 0.402 *** | 0.902 *** |
Africa | 0.024 ** | 0.503 ** | 0.332 *** | 0.502 *** | 0.029 * | 0.120 *** | 0.022 * | 0.039 * | 0.103 *** | 0.804 *** |
America | 0.226 * | 0.402 *** | 0.302 *** | 0.702 *** | 0.334 *** | 0.048 * | 0.089 * | 0.060 * | 0.420 **** | 0.702 *** |
Dependent Variables | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
The kink effect test for the spatial lag model | ||||||||||
Kink point | 5.562 *** 3.406 | 5.198 *** 3.362 | 3.628 ** 7.399 | 4.636 ** 3.678 | 5.237 *** 3.678 | 0.407 | 0.963 | 0.385 | ||
Kink point | 4.210 * 2.309 | 5.342 *** 8.344 | 6.297 *** 8.369 | 0.174 | 0.069 | 0.145 | ||||
Kink point | 0.085 | 0.332 | 8.594 ** 10.297 | 0.276 | 5.227 *** 3.882 | |||||
The kink effect test for the spatial error model | ||||||||||
Kink point | 6.221 *** 3.291 | 5.983 *** 3.401 | 3.239 ** 7.219 | 5.829 *** 3.709 | 4.294 ** 3.590 | 0.529 | 0.920 | 0.621 | ||
Kink point | 4.331 ** 0.2345 | 4.990 ** 7.301 | 5.173 *** 5.591 | 0.290 | 0.301 | 0.157 | ||||
Kink point | 0.086 | 0.573 | 8.501 *** 10.256 | 0.301 | 5.892 *** 3.903 | |||||
The kink effect test for the spatial Durbin model | ||||||||||
Kink point | 6.192 *** 3.441 | 5.562 ** 3.350 | 4.902 ** 7.403 | 6.093 ** 3.667 | 5.892 *** 3.692 | 0.302 | 0.599 | 0.291 | ||
Kink point | 4.601 ** 0.2421 | 6.092 *** 8.356 | 5.688 *** 8.401 | 0.409 | 0.321 | 0.209 | ||||
Kink point | 0.107 | 0.733 | 7.993 *** 10.301 | 0.331 | 5.236 *** 3.892 |
Linear | Spatial AR | Spatial Error | Spatial Durbin | SLE |
---|---|---|---|---|
Loglikelihood | −463.894 | −431.395 | −406.816 | −475.093 |
BIC | 1018.685 | 953.687 | 904.529 | 1041.083 |
Nonlinear | Spatial AR | Spatial Error | Spatial Durbin | SKE |
Loglikelihood | −402.232 | −329.748 | −301.887 | −421.020 |
BIC | 986.259 | 841.291 | 831.018 | 1018.785 |
6.095 *** (0.756) | 1.749 *** (0.312) | 5.827 *** (1.185) | |||
−0.596 ** (0.098) | −0.013 ** (0.005) | −0.101 (0.053) | |||
−0.203 *** (0.068) | 0.022 (0.019) | 0.685 *** (0.161) | |||
0.802 *** (0.165) | 0.005 (0.025) | 1.371 *** (0.356) | |||
0.047 (0.262) | 0.006 (0.057) | 0.021 (0.022) | |||
−0.278 *** (0.043) | 0.445 *** (0.039) | −1.917 *** (0.568) | |||
−0.057 (0.101) | 0.370 *** (0.091) | −1.038 (1.126) | |||
0.044 (0.046) | −0.003 (0.018) | 0.056 *** (0.010) | |||
−0.128 (0.079) | −0.015 (0.014) | −0.209 * (0.105) | |||
0.647 ** (0.254) | −0.070 (0.069) | 0.195 (0.218) | |||
0.109 (0.504) | −0.180* (0.102) | −0.217 (0.609) | |||
−0.030 (0.027) | −0.010 (0.062) | 0.002 (0.003) | |||
0.047 *** (0.016) | −0.005 (0.038) | 0.319 (0.985) | |||
−0.067 (0.041) | −0.073 (0.110) | 0.473 (1.823) | |||
−0.242 ** (0.118) | −0.140 (0.067) | −0.069 (0.116) | |||
0.225 (0.170) | 0.193 ** (0.147) | ||||
−0.691 *** (0.235) | 0.051 (0.033) | ||||
0.185 (0.377) | −0.038 (0.024) | ||||
0.008 (0.065) | 0.052 (0.085) | ||||
−0.009 (0.199) | |||||
0.101 (0.081) | |||||
−0.216 (0.151) | |||||
0.203 (0.457) | |||||
−0.195 (0.874) | |||||
0.038 (0.048) | |||||
−0.022 (0.035) | |||||
−0.141 * (0.072) | |||||
0.210 ** | 0.359 *** | 0.390 *** |
−0.312 ** (0.100) | −0.013 *** (0.002) | −0.080 * (0.037) | |||
−0.193 *** (0.068) | 0.024 (0.042) | 0.740 ** (0.158) | |||
0.773 *** (0.165) | 0.005 (0.026) | 1.409 *** (0.367) | |||
0.058 (0.260) | 0.001 (0.060) | −0.099 (0.094) | |||
−0.282 *** (0.042) | 0.447*** (0.038) | −1.968 *** (0.607) | |||
−0.058 (0.104) | 0.363*** (0.094) | −1.030 (1.153) | |||
0.050 (0.047) | −0.001 (0.020) | 0.050 *** (0.013) | |||
−0.141 (0.080) | −0.020 (0.016) | ||||
0.666 ** (0.262) | −0.067 (0.065) | ||||
0.121 (0.528) | |||||
−0.028 (0.028) | |||||
0.046 *** (0.017) | |||||
−0.076 (0.040) |
0.344 (0.224) | −0.019 ** (0.154) | −0.258 (0.130) | |||
0.221 (0.134) | −0.026 (0.090) | 0.703 *** (0.271) | |||
−0.633 ** (0.284) | −0.004 (0.052) | 0.483 (0.946) | |||
0.236 (0.470) | −0.104 (0.175) | −0.083 (0.056) | |||
0.080 (0.065) | 0.029 (0.073) | 0.103 (2.850) | |||
−0.026 (0.246) | 0.088 ** (0.212) | −0.072 (0.173) | |||
0.134 (0.099) | 0.072 (0.050) | −0.651 (1.502) | |||
−0.294 * (0.176) | −0.065 * (0.038) | ||||
0.411 (0.572) | 0.039 (0.102) | ||||
−0.264 (1.123) | |||||
0.038 (0.062) | |||||
−0.014 (0.045) | |||||
−0.188 ** (0.085) |
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Yamaka, W.; Lomwanawong, S.; Magel, D.; Maneejuk, P. Analysis of the Lockdown Effects on the Economy, Environment, and COVID-19 Spread: Lesson Learnt from a Global Pandemic in 2020. Int. J. Environ. Res. Public Health 2022, 19, 12868. https://doi.org/10.3390/ijerph191912868
Yamaka W, Lomwanawong S, Magel D, Maneejuk P. Analysis of the Lockdown Effects on the Economy, Environment, and COVID-19 Spread: Lesson Learnt from a Global Pandemic in 2020. International Journal of Environmental Research and Public Health. 2022; 19(19):12868. https://doi.org/10.3390/ijerph191912868
Chicago/Turabian StyleYamaka, Woraphon, Siritaya Lomwanawong, Darin Magel, and Paravee Maneejuk. 2022. "Analysis of the Lockdown Effects on the Economy, Environment, and COVID-19 Spread: Lesson Learnt from a Global Pandemic in 2020" International Journal of Environmental Research and Public Health 19, no. 19: 12868. https://doi.org/10.3390/ijerph191912868