The Globalization and Ecological Footprint in European Countries: Correlation or Causation?

Abstract

Exploring the influencing factors of the ecological footprint is a current focus. However, the impacts of globalization on the ecological footprint are inconclusive due to the complexity among variables. The objective of this paper is to investigate the effects of globalization on the ecological footprint in 35 European countries in 1970-2020. While conducting the research, causality, which goes beyond correlation, was emphasized, and the new panel noncausality test is employed. The results indicate that globalization is generally Granger-cause of the ecological footprint in European countries. Additionally, the individual causation test results also show a unidirectional causality from economic globalization to the ecological footprint, bidirectional causality between social globalization and the ecological footprint, and no causality exists between political globalization and the ecological footprint. In conclusion, this paper not only provides valuable insights into the complex dynamics between globalization and ecological footprints but also offers nuanced policy recommendations tailored to European countries. These recommendations are designed to guide them toward achieving long-term sustainability in the face of the intricate relationships between globalization and ecological footprints. JEL Classification: Q57, F64, C23