Investigation of environmental Kuznets curve for ecological footprint: the role of energy and financial development

Mehmet Akif Destek, Samuel Asumadu Sarkodie*

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    860 Citations (Scopus)

    Abstract

    Climate change has become a global phenomenon due to its threat to sustainable development. However, economic development plays a complementary role in both climate change and sustainability. Thus, the environmental Kuznets curve hypothesis is critical to climate change policy formulation and development strategies. Accordingly, this study examined the validity of environmental Kuznets curve hypothesis by investigating the relationship between economic growth, energy consumption, financial development, and ecological footprint for the period from 1977 to 2013 in 11 newly industrialized countries. For this purpose, the study employed both augmented mean group (AMG) estimator and heterogeneous panel causality method which are suitable for dependent and heterogeneous panels. The results of the estimator show that there is an inverted U-shaped relationship between economic growth and ecological footprint. According to the causality test results, it is concluded that there is bi-directional causality between economic growth and ecological footprint.

    Original languageEnglish
    Pages (from-to)2483-2489
    Number of pages7
    JournalScience of the Total Environment
    Volume650
    Issue number2
    DOIs
    Publication statusPublished - 10 Feb 2019

    Keywords

    • Dependency
    • Ecological footprint
    • Economic growth
    • Energy consumption
    • Heterogeneity

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