Does economic globalization have predictive power for ecological footprint in MENA counties? A panel causality test with a Fourier function

Yılancı, Veli; Görüş, Muhammed Şehid

doi:10.1007/s11356-020-10092-9

Cited by 84 publications

(39 citation statements)

References 31 publications

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“…The link between economic growth, FDI, and ecological footprint is contentious with many competing viewpoints. Different studies have assessed the impact of FDI on environmental degradation (Qian and He 2010 ; Du and Zhang 2018 ; Ahmed et al 2019 ; Sabir and Gorus 2019 ; Yilanci and Gorus 2020 ; Kirikkaleli et al 2021 ). Yilanci and Gorus ( 2020 ) concluded that globalization directly impacts the ecological footprint in the MENA area for 1981–2016.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Different studies have assessed the impact of FDI on environmental degradation (Qian and He 2010 ; Du and Zhang 2018 ; Ahmed et al 2019 ; Sabir and Gorus 2019 ; Yilanci and Gorus 2020 ; Kirikkaleli et al 2021 ). Yilanci and Gorus ( 2020 ) concluded that globalization directly impacts the ecological footprint in the MENA area for 1981–2016. Similarly, Du and Zhang ( 2018 ) discovered an N-shaped relationship between economic growth and CO 2 emissions in China.…”

Section: Literature Reviewmentioning

confidence: 99%

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Environmental strategies for achieving a new foreign direct investment golden decade in Algeria

Chaouachi¹,

Balsalobre‐Lorente

2022

Environ Sci Pollut Res

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While numerous studies have discussed the impact of economic growth on the environment, this paper advances in the empirical literature, aiming to validate the existence of an N-shaped environmental Kuznets curve (EKC) relationship between the ecological footprint and economic growth in Algeria during the period 1975–2014. The proposed empirical model includes as additional explanatory variables the foreign direct investment (FDI) and the electricity consumption aimed to increase the relevance of the results, correcting the lack of studies that have previously analyzed the EKC for the case of Algeria. Through the ARDL econometric approach, we confirm an N-shaped EKC between the per capita economic growth and ecological footprint in Algeria, reinforcing these results using the FMOLS and DOLS techniques. In the long run, the empirical results confirmed that the N-shaped EKC in Algeria is valid; electricity consumption and foreign direct investment directly impact ecological footprint. Even though the main objective of this study is to assess the N-shaped EKC, the novelty of the paper is the analysis of the interaction between FDI and electricity consumption. The empirical evidence reveals that FDI contributes to reducing the negative impact of fossil sources in the energy mix in Algeria through the transition to a cleaner energy mix pattern. In the final step of our analysis, we explore the causal nexus among variables by applying the Toda Yamamoto non-causality test. The Toda Yamamoto non-causality test reveals a unidirectional causality between economic growth and ecological footprint; one-run relationship flows from electricity consumption to ecological footprint, and economic growth leads to cause foreign-direct investment. These empirical results evidence the necessity of establishing suitable policies after the gold decade of the FDI in Algeria, being required to advance in this line to come back to ascending levels of FDI after the financial crisis of 2008 and the current COVID-19 crisis. In this sense, policymakers should consider the advantages of FDI for promoting clean foreign investment, necessary for reaching a transition to sustainable development in Algeria. In this sense, this study proposes a battery of environmental strategies to achieve this objective and sustainable growth in the country. Thus, policy implications and directions for future research are suggested. Graphical abstract

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Environmental strategies for achieving a new foreign direct investment golden decade in Algeria

Chaouachi¹,

Balsalobre‐Lorente

2022

Environ Sci Pollut Res

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“…Although each country aspires for strong GDP (Gross Domestic Product) development, trade, technology transfer, foreign investment, urbanisation, and industrialization all contribute to air, water, and land pollution. As a result of the increasing usage of traditional energy sources in key economic activities, the environmental situation has deteriorated [1][2][3]. The effects of global warming, soil depletion, desertification, and other ecological and human environmental distortions have been persistently addressed in many countries.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Globalization, Energy Use, and Trade on Ecological Footprint in Pakistan: Does Environmental Sustainability Exist?

Rehman

Rădulescu

et al. 2021

Energies

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Globalization has contributed to several advances in technology including linking people around the globe and driving us to modern economies. With fast economic growth and industrialization progress, the negative impact of globalization on biodiversity can be easily ignored. Globalization is an undeniable factor in our planetary devastation from pollution to global warming and climate change. The major intention of our recent analysis was to examine the globalization, energy consumption, trade, economic growth, and fuel importation to determine the ecological footprint in Pakistan by taking the annual data variables from 1974–2017. A linear ARDL (autoregressive distributed lag) technique with limited information maximum likelihood and linear Gaussian model estimation were utilized to check the variables association. Outcomes show that in the long run, globalization, energy usage, trade, and GDP growth have consistently productive interactions with the ecological footprint, while an examination of fuel importation uncovers an adversative linkage to impacts on the ecological footprint in Pakistan. Similarly, the findings of short-run interactions also reveal that globalization, energy usage, trade, and GDP growth have constructive linkages; however, an examination of fuel importation also uncovers an adversative linkage to impacts on the ecological footprint. The outcomes of limited information maximum likelihood also expose that the variables of globalization, energy usage, trade, and fuel importation have productive linkages, while an examination the GDP growth uncovers an adversative linkage to the ecological footprint. Furthermore, the outcomes of the linear Gaussian model estimation also uncover that globalization and energy usage demonstrate a constructive linkage, while other variables reveal an adverse linkage to the ecological footprint. Environmental pollution is now an emerging issue which causes the climatic variations associated with greenhouse gases emissions. The Pakistani government must adopt new strategies to ensure that CO2 emissions are reduced in order to stimulate economic growth.

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“…Moreover, a unidirectional causality was found from globalization toward environmental deterioration (Sabir and Gorus 2019 ). The study of Yilanci and Gorus ( 2020 ) highlighted the fact that eco-footprint granger caused financial trade and economic globalization for a group of MENA countries and found that financial globalization had the ability to anticipate future levels of environmental deterioration in the Middle East and North Africa (MENA) (Yilanci and Gorus 2020 ).…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of coal rents, transportation, electricity consumption, and economic globalization on ecological footprint in the USA

Wenlong

Nawaz

Sibghatullah

et al. 2022

Environ Sci Pollut Res

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Over the last three decades, the world has been facing the phenomenon of the ecological deficit as the ecological footprint is continuously rising due to the persistent decline of the per-capita bio-capacity. Moreover, there is a substantial increase in globalization and electricity consumption for the same period, and transportation is contributing to economic prosperity at the cost of environmental sustainability. Understanding the determinants of ecological footprint is thus critical for suggesting appropriate policies for environmental sustainability. As a result, this study analyzes the impacts of economic globalization, transportation, coal rents, and electricity consumption in ecological footprint in the context of the USA over the period 1995 to 2018. The data have been extracted from “Global Footprint Network,” “Swiss Economic Institute,” and “World Development Indicators.” The current study has also applied the flexible Fourier form nonlinear unit root test to examine the stationarity among variables. For the empirical estimation, a novel technique, the “quantile auto-regressive distributive lag model,” is applied in the study to deal with the nonlinear associations of the variables and to evaluate the long-term stability of variables across quantiles. The study’s findings indicate that coal rents, transportation, and globalization significantly and positively contribute to the deterioration of ecological footprints at different quantile ranges in the short and long run. Electricity consumption is found to have a positive and significant impact at lower quantile ranges in the long run but not have a significant impact in the short run. The study suggested that lowering the dependence of the transport sector on fossil fuels, more use of hydroelectricity, and stringent strategies to curb coal consumption would be helpful to reduce the positive influence of these variables on ecological footprints in the USA. Graphical abstract

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Does economic globalization have predictive power for ecological footprint in MENA counties? A panel causality test with a Fourier function

Cited by 84 publications

References 31 publications

Environmental strategies for achieving a new foreign direct investment golden decade in Algeria

Environmental strategies for achieving a new foreign direct investment golden decade in Algeria

The Impact of Globalization, Energy Use, and Trade on Ecological Footprint in Pakistan: Does Environmental Sustainability Exist?

Impact of coal rents, transportation, electricity consumption, and economic globalization on ecological footprint in the USA

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