Ecological footprint and real income: panel data evidence from the 27 highest emitting countries

Uddin, Gazi Ashir and Salahuddin, Mohammad and Alam, Khorshed and Gow, Jeff (2017) Ecological footprint and real income: panel data evidence from the 27 highest emitting countries. Ecological Indicators, 77. pp. 166-175. ISSN 1470-160X


This study examines the effects of real income, financial development and trade openness on the ecological footprint (EF) of consumption using a panel data of leading world EF contributors during the period 1991–2012. A number of panel unit root tests confirm that the data are first-difference stationary. Results from Pedroni co-integration tests show that the variables are co-integrated. The panel dynamic ordinary least squares (DOLS) method is then employed to estimate the long run association between the variables. The results indicate a positive and significant association between ecological footprint (EF) and real income, and a negative and insignificant impact of trade openness on EF. Financial development is also observed to reduce EF. Afterwards, the group-mean fully modified ordinary least squares method is applied to check the robustness of the DOLS estimates. The findings are partially robust as only real income confirms the positive significant impact on EF. In addition, the vector error correction model supports a unidirectional causal impact running from real income to EF. Finally, findings from variance decomposition analysis and impulse response functions reveal that real income will have an increasing effect on EF for the selected countries into the future.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version, in accordance with the copyright policy of the publisher.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 14 Mar 2017 05:49
Last Modified: 17 Apr 2018 01:51
Uncontrolled Keywords: ecological footprint; real income; financial development; trade openness; footprint of consumption; carbon footprint
Fields of Research : 14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140304 Panel Data Analysis
14 Economics > 1499 Other Economics > 149902 Ecological Economics
Socio-Economic Objective: D Environment > 96 Environment > 9606 Environmental and Natural Resource Evaluation > 960609 Sustainability Indicators
B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
Identification Number or DOI: 10.1016/j.ecolind.2017.01.003

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