Does globalization matter for ecological footprint in Turkey? Evidence from dual adjustment approach

The main aim of this paper is to explore the role of globalization on ecological footprint in Turkey while controlling energy consumption, economic growth, and trade openness. To achieve this objective, we employ dual adjustment approach. The main novelty of the dual adjustment approach is that the method offers another path to the cointegration analysis by relaxing the implicit assumption of the singular adjustment in cointegration analysis. The findings clearly reveal that (i) in the long run, globalization impacts ecological footprint positively and (ii) trade openness reduces ecological footprint in the short run, while ecological footprint is negatively affected by GDP growth in both the short and the long run. In terms of policy implications, this study suggests that in order to improve the environmental quality, Turkey should adopt such policies that encourage energy consumers to shift toward renewable energy. Moreover, the government should take necessary steps to diversify the overall energy mix toward renewable energy.

Automated summary

By using a dual adjustment approach, this study finds that globalization has a positive long-term impact on Turkey's ecological footprint, while trade openness reduces the footprint in the short term, and GDP growth negatively affects it in both the short and long term. The study suggests that policies should be implemented to encourage energy consumers to shift towards renewable energy and to diversify the overall energy mix towards renewable sources.