Exploring the Nexus Between Environmental Sustainability Practices and Economic Performance in Local Government Units in Cagayan Valley Region: An Analysis using CMCI Data

Abstract: This study explores the nexus between environmental sustainability practices and economic performance in Local Government Units (LGUs) of the Cagayan Valley Region, using data from the Cities and Municipalities Competitiveness Index (CMCI) from 2020 to 2022. The research aims to assess the environmental sustainability initiatives of LGUs and evaluate their economic outcomes, analyzing trends and patterns to uncover potential correlations. Key indicators, including utility costs, gross sales, and business capitalisation, were examined to determine the relationship between sustainability and economic performance. Results reveal a moderate positive correlation between electricity costs, particularly for industrial users, and economic performance, while water costs exhibited weaker associations. The findings suggest that energy management is a significant factor influencing economic outcomes, with energy-efficient practices offering long-term benefits for both economic growth and environmental sustainability. The study provides policy recommendations to enhance ecological and economic performance, including investments in renewable energy, infrastructure improvements, and sustainable resource management. These strategies are crucial for promoting balanced regional development and aligning local objectives with global sustainability goals.