Journal of Natural Environment

The impact of economic growth on environmental degradation in Middle East region: application of ecological footprint

Document Type : Research Paper

Authors

1 assistant professor of agricultural economics, Shiraz university

2 Ph. D. Student of Economics of Natural Resources and Environment, College of Agriculture, Shiraz University

3 Assistant Professor of Agricultural Economics, College of Agriculture, Gilan University

4 Ph. D. Student of Agricultural Economics, College of Agriculture, Shiraz University

Abstract

This study examines the effects of economic growth, energy consumption, biological capacity and trade openness on the ecological footprint (EF) of consumption as index of environmental degradation using a panel data during the period 1990–2013. A number of panel unit root tests confirm that the data are first-difference stationary. Results from Pedroni and Kao panel co-integration tests show that the variables are co-integrated. Therefore, the panel Fully Modified Ordinary Least Square (FMOLS) method is then employed to estimate the long run relationship between the variables. The results indicate a positive and significant relationship between ecological footprint (EF) and biological capacity, and a negative and insignificant impact of trade openness on EF. Energy consumption is also led to increase EF. The results showed the N-shape relationship between EF and economic growth. Therefore, economic growth will lead to further environmental degradation in this region.

Keywords

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Journal of Natural Environment
Volume 73, Issue 1
April 2020
Pages 77-90