This paper examines the relationship between income and environmental quality using environmental Kuznets curve (EKC) hypothesis. The hypothesised link is tested using time‐series analysis of 22 countries over the period 1961–2011. The degree of environmental impacts of economic activity is measured using ecological footprint (EF) per capita as explanatory variable, while real gross domestic product (GDP) per capita and its quadratic and cubic forms are used as predictor variables in these countries. First, the EKC hypothesis is tested through examining the relationship between EF and GDP using linear, quadratic and cubic functions. Further, the long‐run relationship between EF and GDP is investigated using a vector error correction model. It was found that there is a cointegrated relationship between the variables in almost all countries, which was statistically significant, and EKC supported in 10 countries. Additionally, almost all error correction terms are correct in sign and are significant, which implies that some percentage of disequilibria in EF in the previous year adjusts back to the long‐run equilibrium in the current year. Therefore, an efficient trade‐off between environmental protection and economic benefits should be taken, and EF should be reduced through changing consumption patterns, improving the efficiency of use of resources and cleaner technology choices.
The ecological footprint methodology permits the monitoring of dominant threats to sustainability. One of the benefits of ecological footprint methodology is its capacity to distinguish between resources consumed and resources available and then reveal how ecologically sustainable those consumption patterns are. The main aim of this paper is to determine the size of the ecological footprint of grains consumption in Australia in order to evaluate the level of environmental sustainability. The paper uses both local and global yield data with inter-temporal timeseries yield factors instead of only global yield. This paper also uses production and consumption data on various grain crops. Results indicate that the ecological footprint of grain consumption in Australia only exceeds biocapacity when the energy requirements of these crops are included in the evaluation. The size of the revealed ecological footprint are responsible for the amount of grain consumption, energy inputs, the size of the population, the degree of carbon dioxide equivalent (CO 2 -e) gas emissions, and the amount of other farm inputs. This paper highlights the environmental significance of the ecological footprint of grain crops consumption in Australia. This paper also reinforces how intensely a sustainable future depends on the reshaping of the Australian grain industry.JEL Classification: Q15, Q51, Q58
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