Segmentation of OECD countries on the basis of selected global environmental indicators using k-means
Pallavi Kudal1, Amitabh Patnaik2, Sunny Dawar3
1Balaji Institute of International Business (BIIB), Sri Balaji University, Pune, Maharashtra, India.
Abstract:
In order to allocate resources and describe progress, frequently nations are grouped together by many international authorities. A variety of pertinent indicators can provide a more useful basis for classification for each specific area of interest. Based on commonalities between various variables connected to the global environmental sector, we developed a novel typology of country clusters. Four indicators were chosen after a review of the literature. In order to optimize data availability across as many OECD nations as feasible, indicators were chosen based on their relevance for all the OECD countries. Countries were arranged into a natural cluster using the hierarchical clustering method. Four groups, covering 31 countries, were the result of two stages of grouping. These four clusters were found to be more compact and clearly divided which gives policymakers a clear-cut idea as to how these environmental indicators are deteriorating day by day and year by year and what needs to be done to be more environmentally sustainable and responsible.
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