The effect of financial development and economic growth on ecological footprint: evidence from top 10 emitter countries

Shahbaz M., DOĞAN M., Akkus H. T., Gursoy S.

Environmental Science and Pollution Research, cilt.30, sa.29, ss.73518-73533, 2023 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 30 Sayı: 29
  • Basım Tarihi: 2023
  • Doi Numarası: 10.1007/s11356-023-27573-2
  • Dergi Adı: Environmental Science and Pollution Research
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, IBZ Online, ABI/INFORM, Aerospace Database, Agricultural & Environmental Science Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, CAB Abstracts, EMBASE, Environment Index, Geobase, MEDLINE, Pollution Abstracts, Veterinary Science Database, Civil Engineering Abstracts
  • Sayfa Sayıları: ss.73518-73533
  • Anahtar Kelimeler: Ecological footprint, Economic growth, Financial development, Non-renewable energy
  • Bilecik Şeyh Edebali Üniversitesi Adresli: Evet

Özet

This study investigates the effect of financial development and economic growth on ecological footprint by including non-renewable energy consumption and trade openness as additional determinants. For this purpose, annual data of 10 countries with the highest ecological footprint (China, the USA, India, Japan, Brazil, Indonesia, Mexico, Korea, Turkey, and the UK) for the period 1992–2017 is used. The Westerlund and Edgerton (2007) Panel LM bootstrap test results reveal that there is cointegration between the variables. Additionally, the results obtained from the Common Correlated Effects (CCE) coefficient estimator show that financial development, economic growth, and non-renewable energy consumption negatively affect environmental quality by increasing ecological footprint. On other hand, the effect of trade openness on ecological footprint is found to be statistically insignificant. In addition, according to the panel causality test results, a unidirectional causality from financial development to ecological footprint is found while bidirectional causality between economic growth and ecological footprint exists. Therefore, it would be beneficial for policymakers in such countries to direct financial resources to green energy production and consumption and to encourage projects and practices.