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The interplay among ecological footprint, real income, energy consumption, and trade openness in 13 Asian countries

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Abstract

This article investigates the effects of real income, trade openness, and energy consumption on the ecological footprint using a panel data of 13 Asian countries over the 1973–2014 period. The empirical findings suggest that the panel variance-ratio test confirms the existence of a long-run equilibrium relationship among ecological footprint real income, trade openness, and energy consumption. Results from panel pooled mean group estimates confirm that the long-run elasticity of real income, trade openness, and energy consumption is 0.16, −0.07, and 0.51, respectively. The real income and energy consumption have a positive impact on the ecological footprint. There are three bidirectional causal relationships that were found between ecological footprint and real income; between energy consumption and ecological footprint; and between trade openness and ecological footprint. In addition, three unidirectional causalities can be found: a unidirectional causality running from real income to trade openness; from real income to energy consumption; and from trade openness to energy consumption. Those causal relationships show that economic indicators are highly related to ecological footprint. The findings recommend that various governments should fund more in renewable energy and efficiency upgrade and continue sustaining their growth without hurting the environment.

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Notes

  1. The data and description can be found at following address: https://www.footprintnetwork.org/our-work/ecological-footprint/

  2. \( {\overline{y}}_{i,t}=\frac{1}{N}\sum \limits_{i=1}^N{y}_{i,t} \) and \( {\overline{x}}_{i,t}=\frac{1}{N}\sum \limits_{i=1}^N{x}_{i,t} \)

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  1. Department of Economics and Finance, Ming Chuan University, 5 De Ming Rd., Gui Shan District, Taoyuan City, 333, Taiwan, Republic of China

    Wen-Cheng Lu

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  1. Wen-Cheng Lu
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Correspondence to Wen-Cheng Lu.

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Lu, WC. The interplay among ecological footprint, real income, energy consumption, and trade openness in 13 Asian countries. Environ Sci Pollut Res 27, 45148–45160 (2020). https://doi.org/10.1007/s11356-020-10399-7

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