Journal
ECOLOGICAL INDICATORS
Volume 98, Issue -, Pages 543-555Publisher
ELSEVIER
DOI: 10.1016/j.ecolind.2018.11.034
Keywords
Environmental Kuznets curve; Ecological footprint; Economic growth; Panel smooth transition regression model
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The aim of this paper is to empirically investigate the nonlinear effects of economic growth on ecological footprints as an indicator of environmental degradation. The sample consists of 26 European Union (EU) countries by covering the 1990-2013 period. We employ the recently developed panel smooth transition regression (PSTR) model, which can predict the threshold level endogenously. These ecological footprints are divided into those occurring on six major categories of ecologically productive areas, including cropland, grazing land, forest area, fishing grounds, built-up land, and carbon-absorption land. The empirical results indicate that environmental pressure tends to increase with economic development, but then does not decline with further growth for all the ecological footprints except the fishing grounds footprint (FGF). The empirical findings imply that the EKC hypothesis is a problematic phenomenon, at least in the case of the accumulation of stocks of waste, since the relationship between ecological footprint types (excluding the FGF) and economic development does not exhibit the inverted U-shaped pattern associated with the EKC hypothesis.
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