The effect of financial development and economic growth on ecological footprint in Azerbaijan: an ARDL bound test approach with structural breaks

Acar, Samet; Altintaş, Nurullah; Haziyev, Vügar

doi:10.1007/s10651-022-00551-6

Cited by 21 publications

(18 citation statements)

References 43 publications

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“…The existing literature customarily focused on environmental degradation and utilized different demandsided indicators such as SO2 [3,4], Nitrogen Oxide [5,6], suspended particulate matter [7,8], water quality [9], CO2 [10,11], and ecological footprint [12,13]. These studies are carried out under the EKC theory's scope, which Grossman and Krueger propounded [3].…”

Section: Introductionmentioning

confidence: 99%

Assessing the Environment From Both Supply and Demand Aspects in New Emerging Countries: The LCC and the EKC Approaches

Bakirtas,

Acikgoz,

Ozdilek

2023

Preprint

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This study delves into the validity of the Environmental Kuznets Curve (EKC) and Load Capacity Curve (LCC) hypotheses as well as the effect of energy consumption (EC) and urbanization (URBAN) on the environment in BNIVMT countries (Bangladesh, Nigeria, Indonesia, Vietnam, Mexico, and Turkey) for the years 1990–2018. Two models were employed for this purpose. The following results are attained: i-) The first model purports that the EKC hypothesis is confirmed only in Nigeria and Vietnam, but the U-shape trajectory was found in Indonesia. ii-) The findings of the second model do not provide support for the validity of LCC theory in BNIVMT countries, whereas an inverted U-shaped relationship between GDP and LCF was revealed in Bangladesh and Indonesia. iii-) Energy consumption worsens environmental quality in Bangladesh, Nigeria, Indonesia, Turkey, and the entire panel. Urbanization deteriorates the environment in Bangladesh, Indonesia, Vietnam, and Turkey, whereas it ameliorates the environment in Nigeria. iv-) The causality relationship from GDP, EC, and URBAN to the ecological footprint (EF) and the load capacity factor (LCF) is attested in Nigeria. Findings evince EC causes environmental degradation in Turkey. Urbanization causes ecological degradation in Vietnam. v-) In countries where EKC has been ratified, the LCC may not necessarily follow a U-shaped trajectory, indicating that interpretations of the EKC hypothesis based on the LCC shape may yield inconsistent results.

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Section: Introductionmentioning

confidence: 99%

Assessing the Environment From Both Supply and Demand Aspects in New Emerging Countries: The LCC and the EKC Approaches

Bakirtas,

Acikgoz,

Ozdilek

2023

Preprint

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“…Pollutants are released as a by-product of many economic processes whose primary purpose is to facilitate economic progress (Acar et al ., 2023; Adebayo and Beton Kalmaz, 2021; Kongbuamai et al ., 2020). Emissions are increased by expanding industries, including manufacturing, agriculture, energy extraction and petroleum extraction (Kongbuamai et al ., 2020; Udemba, 2020).…”

Section: Introductionmentioning

confidence: 99%

Towards environmental sustainability: nexus of ecological footprint, human capital, economic growth and energy consumption in India

Ritu,

Kaur

2023

MEQ

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PurposeThe research is geared towards studying the impact of “GDP per capita (GDP)”, “energy consumption (EC)”, “human capital (HC)” and “trade openness (TO)” on India's ecological footprint (EF) from 1997–1998 to 2019–2020.Design/methodology/approachThe autoregressive distributed lag model (ARDL) bound test was used to look at the short-run and long-term coefficients and the cointegration of the variables.FindingsThe results depicted a long-run connection between the variables. The long-run results found a favourable relationship between GDP, EC and EF, indicating that economic growth through heavy reliance on fossil fuels contributes to environmental unsustainability. An inverse relationship between HC, TO and EF was also observed, indicating that education fosters pro-environmental behaviour and leads to adopting cleaner technology that contributes to environmental sustainability.Research limitations/implicationsThe research substantiates India's pressing requirement for sustainable development, ensuring a harmonious balance between economic performance and environmental preservation. A carefully designed policy needs to be formulated to mitigate emissions stemming from growth in India. Policymakers are urged to implement measures that promote ecologically friendly tools, utilities and transportation to curb long-term environmental degradation.Originality/valueThe study is novel, incorporating an exhaustive review using Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA). This study further examines how India's EF is affected by its HC; the preceding literature has yet to discuss much about the connection between HC and the environment. Finally, the study employed advanced econometric techniques, namely the cointegration technique and ARDL model, to find the relationship between EF, GDP, HC, EC and TO.

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“…It highlights the importance of comprehending the relationship between income and environmental impact indicators and the specific contributions of financial development and trade openness. Not surprisingly, there has been growing interest in this topic in the literature [ 12 , 13 , [16] , [17] , [18] ]. However, there is no conclusive consensus on the precise shape of the environmental impact curve with respect to income in these and other related studies [ 19 ].…”

Section: Introductionmentioning

confidence: 99%

“…However, there is no conclusive consensus on the precise shape of the environmental impact curve with respect to income in these and other related studies [ 19 ]. Various results have been reported, with some studies indicating a monotonically increasing relationship [ 20 ], a monotonically decreasing relationship [ 21 ], an inverted U-shaped curve [ 18 , 22 , 23 ], or a U-shaped curve [ 10 , 24 , 25 ]. These discrepancies can be attributed to variations in measures of environmental quality and contextual factors among the countries studied [ 10 , 26 ].…”

Section: Introductionmentioning

confidence: 99%

“…Some studies, for instance, Dada et al [ 12 ], suggest that financial development and trade openness contribute to the intensification of environmental degradation. Conversely, studies by Dada et al [ 17 ] and Acar et al [ 18 ] propose that financial development and trade openness actually help mitigate environmental degradation. Therefore, it is evident that there is no definitive consensus regarding the effects of financial development and trade openness on environmental quality indicators across different countries.…”

Section: Introductionmentioning

confidence: 99%

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Testing the income-finance-trade-environment nexus based on the ecological load capacity factor: Frequency-domain causality evidence from Nigeria

Okezie,

Nwani,

Nnam

et al. 2023

Heliyon

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The effect of financial development and economic growth on ecological footprint in Azerbaijan: an ARDL bound test approach with structural breaks

Cited by 21 publications

References 43 publications

Assessing the Environment From Both Supply and Demand Aspects in New Emerging Countries: The LCC and the EKC Approaches

Assessing the Environment From Both Supply and Demand Aspects in New Emerging Countries: The LCC and the EKC Approaches

Towards environmental sustainability: nexus of ecological footprint, human capital, economic growth and energy consumption in India

Testing the income-finance-trade-environment nexus based on the ecological load capacity factor: Frequency-domain causality evidence from Nigeria

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