Investigating the relationship between economic growth and ecological footprint in Egypt

Abstract

The paper aims to investigate the relationship between Economic growth and Ecological footprint in Egypt for a time series from 1971-2022. The study adopts unit root tests, granger causality tests and autoregressive distributed lag (ARDL) tests to analyze the relationship between six variables, Ecological Footprint measured by (gha), Economic growth measured by GDP (current US$), Total natural resources rents measured by (% of GDP), Gross capital formation as a% of GDP, Inflation measured by GDP deflator, unemployment measured by total (%of total labor force) National Estimate.Main findings; GDP has a significant and positive relationship to the ecological footprint in the long and short run, which means if the GDP of Egypt increases by (0.61%) the ecological footprint will increase by (1%) in the short run. Natural resources rent has a significant negative relationship with Ecological footprint in the short run and a significant positive relationship in the long run. Gross capital formation has an insignificant relationship to Ecological footprint in the short run, whereas it has a significant positive relationship to Ecological footprint in the long run. Both unemployment and Inflation, have an insignificant relationship to ecological footprint in the short run, and only Unemployment has a significant negative relationship to Ecological footprint in the long run. Egypt can achieve economic growth without depleting the environment in both the long and short run by letting both the private sector and government develop and implement technology that decreases pollution while permitting continuous economic expansion, aided by public policies that range from commandand-control restrictions to direct and indirect government subsidies.

The nexus between Global Warming, Economic Growth, and Cereal Production in Egypt

“…According to a study conducted by, Eissa (2023) with a purpose of examine, over a time series spanning 1971 to 2022, the link between ecological footprint and economic growth in Egypt. The Key findings are GDP and ecological footprint have a strong, positive association both in short and long run.…”

“…From my point of view the reason for the results of this study can be interpreted as follow:-Economic growth may be defined as the process of growing a country's productive capacity in the form of national revenue, it is considered to be essential for any country like to achieve more welfare for its people. (Eissa, 2023) There is a connection between heat waves and Economic growth as production will be decreased, taking for example the tourism stops to country if the heat exceeds certain limits (Elsayed, 2023).…”

“…This cost is expected to increase over time as the impacts of changes on climate become more acute, the world's poorest nations are most defenceless to the negative economic effects of changes on climate. Egypt will face more environmental pressure due to climate changes, like as an increase in temperatures, unpredictable rainfall, increasing sea levels and shoreline erosion, land subsidence, coastal floods, changing soil salinity, and drought (Eissa, 2023). Agriculture-related welfare losses are projected to be between 140 and 824 billion Egyptian pounds (EGP) in 2060.…”