The Implications of Ecological Footprint for EKC Hypothesis by Considering Cross-section Dependence and Heterogeneity

Abstract

“Ecological Footprint” is increasingly being used as a stand-in for environmental deterioration in current energy, environment, and growth literature. By including ecological footprint together with other independent variables such as energy usage, GDP, trade, and urbanization for a few Asian nations between 1990 and 2018, this analysis adds to the body of current work. Findings support panel heterogeneity and cross-sectional dependency. The study established a long run cointegration relationship among variables. The findings of the FMOLS study show that actual income has a favorable effect on ecological footprints. For a few Asian nations, we find no support for the EKC theory. The results of this research provide a clearer understanding of how the economic factors and ecological footprint interact. Energy efficiency initiatives should be implemented in these nations to encourage energy saving and the use of renewable energy to reduce environmental effects. Moreover, plans to boost the economies of the Asian region's nations' revenue-generating industries are advised.