The Impacts of Energy Usage and Economic Growth on the Ecological Footprint and CO₂ Emissions: The Case of G-7 Countries

Abstract

This study investigates the relationship among economic growth, energy usage, urbanization, trade openness, carbon emission, ecological footprint, and ecological carbon footprint with the sample of G-7 countries over the period 1991–2017. The Continuously-Updated and Fully-Modified (CUP-FM) estimator method applied to the panel series is utilized. As a result of empirical analysis, an increase in the real per capita GDP increases the ecological footprint by 0.844%. Also, there are positive impacts that are detrimental to the environment among the environmental quality and explanatory variables for each established model. The findings indicate that a relationship exists among the variables in the long run, and at the same time, carbon emission as an indicator of pollution should be noticed as well as the ecological footprint and ecological carbon footprint. It is observed that a positive relationship exists among the variables such as economic growth, energy usage, and environmental pollution indicator. In this context, G-7 countries indicate that, upon taking their developed economic structures and global pollution levels into account, the Environment Kuznets curve (EKC) hypothesis becomes valid, and that the U-shaped behavior is valid for the total ecological footprint. It is been seen that, besides economic growth and energy usage, other explanatory variables contribute to environmental degradation in trade openness. In compliance with these results, in terms of the sustainability of economic development, G-7 countries should pay attention to economic activities that would impair the environmental quality and control them with regulations.

Citation

Bozkaya, Ş. and Duran, M.S. (2022), "The Impacts of Energy Usage and Economic Growth on the Ecological Footprint and CO₂ Emissions: The Case of G-7 Countries", Dinçer, H. and Yüksel, S. (Ed.) Multidimensional Strategic Outlook on Global Competitive Energy Economics and Finance, Emerald Publishing Limited, Leeds, pp. 113-126. https://doi.org/10.1108/978-1-80117-898-320221012