For measurement relations presented in Fig 1, there is an error term attached to each observed variable.
This error term is interpreted as a measurement error or an observational error. These errors are
significant for almost every indicator.
Standardized structural coefficient estimates are based on standardized data, including correlation
matrixes. Standardized estimates are used, for instance, when comparing direct effects between latent
variables. In AMOS, the standardized structural coefficients are labeled “standardized regression
weights ”.
According to structural model relations analyzed, air pollution intensity may also be affected by the
level of the ECONOM and STRUCT, coefficients 0.05 and 0.85 reflect the effect of latent variable
ECONOM and the effect of latent variable STRUC on air pollution intensity respectively. The estimation
results show that the STRUCT effect which is 0.85 is higher than ECONOM which is 0.05. The
correlation between the STRUCT and the level ECONOM is 0.94, which suggests that economic
structure and economic activities closely. In addition, the variable STRUCT has significant and positive
effect on the level of air pollution. These results suggest the structure of economic activity has a
significant effect on the level of air pollution.
The measurement model of the indicators describing air pollution intensity is rather high. The value of
SO2PC for this indicator 0.98 is the highest, the value of NOXPC for this indicator 0.71 is middle and the
value of CO2PC for this indicator 0.43 is low. This may be the result of the differences in the emission
aggregation, NOXPC emissions may include more emissions from savannah fires.
The measurement model of the indicators describing the significant and positive effects of TRADE,
GDPPC and INTEN on changes in the ECONOM of economic activity. It also show the significant and
positive effects of urbanization URBAN and industrialization INDUST on changes in economic structure.
These results suggest that in the developing countries analyzed both urbanization URBAN and
industrialization INDUST lead to changes in the structure of economic activity and - as a consequence –
to increase in air pollution. This suggests that, in the developing countries, more open economies
experience faster structural change which, on the first stage of growth, leads to higher pollution.