USING SATELLITE DATA FOR ENVIRONMENTAL IMPACT ANALYSIS IN ECONOMIC GROWTH: THE CASE OF MONGOLIA

Abstract. The Mongolian economy is based on the primary and secondary economic sectors of agriculture and industry. In addition, minerals and mining become a key sector of its economy. The main mining resources are gold, copper, coal, fluorspar and steel. However, the environment and green economy is one of the big problems among most of the countries and especially for countries like Mongolia where the mining is major part of economy; it is a number one problem. The research of the work tested how environmental elements effect to current Mongolian economic growth, which is growing economy because of mining sector.

The study of economic growth but the starting point for any study of economic growth is the neoclassical growth model emphasizing the role of capital accumulation. The growth is analysed either in terms of models with exogenous saving rates (the Solow-Swan model), or models where consumption and hence savings are determined by optimizing individuals. These are the so-called optimal growth or Ramsey-Cass-Koopmans. The study extends the Solow model and the Ramsey-Cass-Koopmans model, including environmental elements which are satellite data determine to degraded land and vegetation value from 1995 to 2013. In contrast, we can see the degraded land area increases from 1995 (4856 m²) to 2013 (10478 m²) and vegetation value decrease at same time.

A description of the methodology of the study conducted follows together with the data collected and econometric estimations and calibration with environmental elements.