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Showing 7 results for Ecological Footprint
Volume 9, Issue 2 (3-2006)
Abstract
The present article aimed at studing the effects of ecocity approach on coastal city development. To illustrate the issue, we first tried to deal with the problems of city development in the coastal areas, the damages caused by the lack of attention of city builders to delicate and fragile coastal areas and the coditions governing the interaction of land and sea areas. We then reviewed the most common approaches in building new cities. Our findings showed that ecocity can have positive effects and influences on the development of coastal cities, because in ecocity building, the special local conditions are taken into account. The evidence and experiences of successful cities in the world imply the importance of ecocity approach in planning and designing of coastal cities. There fore some of the factors that are influential in the optimal development of the coastal city of Babolsar were tested. The results showed that by employing factors such as the reduction of ecological footprint around the river of Babolrood, diversification of activities in city areas, vertical development in old parts of the city and its suburbs and raising the socio – economic status of the citizens, the ongoing problems of the city of Babolsar can be resolved.
Volume 19, Issue 7 (12-2017)
Abstract
The Ecological Footprint (EF) is used to understand the relationship between human activities and pressure on land and its resources. The present study combined multi-functional ecological footprint with Data Envelopment Analysis (DEA) to estimate environmental impacts of inefficient use of resources of silage corn production in the Sarayan County, Iran. In this applied survey research, data were collected using a questionnaire accompanied by face-to-face interviews with 42 farmers (N= 48). Validity of the instrument was approved by a panel of experts; while its reliability was secured via pretest-posttest method. Results showed that mean technical efficiency, pure technical efficiency and scale efficiency were 0.86, 0.93, and 0.80; respectively. The CO2 footprints were 0.95 and 0.83 gha under current and optimum conditions; respectively, with electricity and manure comprising the highest and lowest shares. The Ecological footprint land- (gha gha-1 farm), yield- (gha ton-1) and revenue-based (gha $-1 1,000) EFs were estimated to be 1.6, 0.84, and 1.4 under current conditions but 1.57, 0.081, and 1.33 under optimum conditions, respectively. When the resources were used efficiently, the EFCO2 and EF improved by 13.42 and 3.35% respectively, in which the highest shares in terms of quantity and percentage belonged to electricity, manure and fertilizer. Findings implied that optimum usage of electricity and fertilizer could play a significant role in mitigating environmental impacts of silage corn production in Sarayan. Local agricultural extension should focus on introduction of innovative irrigation systems to reduce water, electricity and fertilizer consumption. Meanwhile, to improve silage corn efficiency, farm size expansion is recommended based on the DEA findings.
Mrs. Azam Esfahani, Dr Sara Ghobadi, Dr Karim Azarbayejani,
Volume 22, Issue 4 (12-2022)
Volume 22, Issue 4 (12-2022)
Abstract
Introduction:
The purpose of this paper is to analyze the relationship between economic growth, energy consumption and ecological footprint in 27 developing countries and 27 developed countries during the period 1990-2018.
Methodology:
This paper analyzes the relationship between economic growth, energy consumption, and ecological footprint in 27 selected developing countries and 27 selected developed countries over a period of 1990-2018. The present model was developed according to as Akadiri et al. (2019) and Mohammad et al. (2019), which are in the form of the following three equations:
The EFP is an ecological footprint index that compares the rate of resource consumption and production of human waste with the rate of resource reproduction and waste disposal by the biosphere, being defined in terms of the amount of land needed to maintain this cycle. EG is described as the economic growth. NREC is the consumption of non-renewable energy and includes energy from combustible non-renewable energy, such as oil, gas, hydrocarbons, coal, and nuclear energy. REC is the consumption of renewable energy. FD is financial development. URB is the growth rate of urbanization. TO is the degree of trade openness. L is the labor force. K is an investment. HC is human capital. FR is the fertility rate. MR is the mortality rate. PI is political instability. TEC is the technology. KOFE is the globalization of the economy. In order to analyze the relationship between the mentioned variables, the Generalized Method of Moments (Sys-GMM) was used.
Results and Discussion:
The results showed that in both groups of developed and developing countries, economic growth was correlated with energy consumption and ecological footprint index. Nonrenewable energy consumption, urbanization rate, fertility rate and mortality rate in both groups of the country had positive effects and the renewable energy, technological growth rate and human capital had negative effects on ecological footprint. Economic growth had a negative effect on the ecological footprint of developed countries and a positive effect on the ecological footprint of developing countries, which indicates that more developed countries rely on the use of renewable energy. Ecological footprint has a negative effect and economic growth, urbanization rate and financial development had positive effects on energy consumption in both groups of countries. Ecological footprint has had a negative effect on the economic growth of developed countries and a positive effect on the economic growth of developing countries. Renewable and non-renewable energy, financial development, degree of trade openness, physical capital, labor and economic globalization had positive effects and political instability and mortality rates had negative effects on economic growth in both groups.
Conclusion:
Based on the results of the research, it is suggested that countries, especially developing countries, try to create and use clean energy. High information, proper education, exchange of information with other countries to benefit from the information and advanced goods that are in line with the environment, taxation of producers who use polluting energy and granting tax exemptions and low-interest and long-term loans to producers who use clean energy will reduce the ecological footprint. Given the impact of non-renewable and renewable energy on growth and economic development, the contradiction of the impact of economic growth on the ecological footprint in developed and developing countries indicates that developed countries have adopted an approach based on which renewable energy is used rather than non-renewable energy in the production process. While the use of non-renewable energy sources in developing countries, although leading to economic growth, has led to environmental degradation. Since increasing economic growth is one of the most important economic goals of countries, it is necessary for policymakers to take measures in terms of economic growth, which imposes the least damage to the environment and achieves the goals of sustainable development. In this regard, it is recommended that the developing countries, as well as the developed countries, use renewable and less polluting energy such as solar, wind, and hydropower instead of non-renewable energy.
Dr Bakhtiar Javaheri, Mrs. Homeyra Shahveisi, Mrs. Samira Mohammadi,
Volume 23, Issue 2 (5-2023)
Volume 23, Issue 2 (5-2023)
Abstract
Aim and Introduction
In recent decades, the environment has become one of the most important concerns of societies and governments. Achieving economic growth and development is costly and leads to an increase in the consumption of ecological capital. The efforts of countries to increase per capita income and prosperity, if not accompanied by environmental considerations, will bring irreversible losses, including rapid climate change and environmental destruction. Thus, comprehensive investigation and determination of economic and non-economic effective factors on the environment is of particular importance, to the extent that it has forced governments to adopt short- and long-term policies and programs to protect the environment.
The existing economic literature on the Environmental Kuznets Curve (EKC) hypothesis indicates that at a threshold level of per capita income, countries reach a level of development where environmental improvements are achieved, but these studies have a serious flaw. Because they only focus on GDP per capita as a key variable to achieve environmental improvements and ignore the social dimension which is considered the pillar of sustainable development. Since the human development index includes the simultaneous description of social development and economic development, therefore, in this research, the Human Development Index is used instead of GDP per capita to investigate the Environmental Kuznets Curve (EKC) hypothesis and the relationship between HDI and the quality of the environment. Furthermore, political institutions can have a long-term direct impact on the environment and its sustainability. Therefore, investigating whether the indicators of human development, political and civil liberties can affect the quality of the environment, can be important.
Method
In the present study, the effects of human development, political and civil liberties indicators on the environmental performance index (Ecological Footprint) in developing countries and developed countries are investigated using the System Generalized Method of Moments method (GMM-SYS). Then the Environmental Kuznets Curve hypothesis is investigated in selected countries. Likely, a country that has benefited from more ecological capital for its needs in the past will be more prone to environmental destruction and use of ecological resources in the future. Therefore, it is necessary to investigate the impact of the variable interruption of the ecological footprint on its value in the current year. Accordingly, in this research, the method of the System generalized moments is used, which helps to solve the possible problems of endogeneity caused by the existence of an interval of the ecological footprint variable as an independent variable by using instrumental variables.
The Generalized Moments' estimator is used in cases where the independent variables of the model are not completely exogenous. This estimator controls for the endogeneity problem by using instruments from the intercept of the dependent variable or the intercept of any other endogenous variable that is assumed to be uncorrelated with the fixed effects. The validity of the tools used in the model can be measured using the j-Hansen (1982) and Arellano and Bond AR (2) tests.
Findings
The results of the research indicate that the Human Development Index in selected developing and developed countries has a significant and negative effect on the ecological footprint, and a higher human development index is useful for improving the quality of the environment and reduces of pollutant emissions. Therefore, when the level of income, education, and health services in a country improves, the awareness of the importance of a safe and quality environment will increase. Similarly, according to the results of the Kuznets hypothesis, the relationship between the Human Development Index and the ecological footprint in the studied countries, confirms the hypothesis of Kuznets and the inverted U.
The index of political development and civil liberties has a negative and significant effect on the ecological footprint in both developing and developed countries. It seems that the increase in civil liberties, higher democracy, and improvement of political rights will reduce the damage to the environment.
The results suggest that with the increase in the consumption of fossil fuels, more pollutants are released into the environment, which leads to the destruction of the environment and harming it. Based on the results of the research, it can be said that trade liberalization and active international trade allow the transfer of newer technologies to developing countries that produce fewer pollutants. In addition, increasing urbanization in developing countries has a negative impact on the quality of the environment, but countries that focus more on economic development and scale can improve the quality of the environment by promoting the use of advanced technologies in parallel with urbanization.
Discussion and Conclusion
The findings of the research indicate that policymakers are more likely to achieve sustainable economic development by improving the level of the human development index. Therefore, providing education and a health care system for all members of society can lead to the reduction of environmental degradation through the improvement of the human development index; Thus, increasing democracy, clarifying laws and regulations, freedom of assembly, freedom of the media and awareness can control corruption and prevent the personal use of natural and environmental resources by officials and powerful people.
Policies such as pollution tax, green tax, development of energy-saving vehicles, and replacing them with worn-out vehicles can reduce energy consumption and reduce the emission of pollutants in the environment. Furthermore, increasing the degree of trade openness allows the entry of advanced and improved technologies that produce less pollution. Therefore, policymakers in developing countries are advised to import clean and renewable energy technologies to their country by increasing active international trade.
Keywords: Human Development Indicator, Political Development Indicator, Ecological Footprint, Environmental Kuznets Curve (EKC) Hypothesis, Systemic Generalized Method of Moments
JEL Classification: F18, O13, P28, P48, Q56
In recent decades, the environment has become one of the most important concerns of societies and governments. Achieving economic growth and development is costly and leads to an increase in the consumption of ecological capital. The efforts of countries to increase per capita income and prosperity, if not accompanied by environmental considerations, will bring irreversible losses, including rapid climate change and environmental destruction. Thus, comprehensive investigation and determination of economic and non-economic effective factors on the environment is of particular importance, to the extent that it has forced governments to adopt short- and long-term policies and programs to protect the environment.
The existing economic literature on the Environmental Kuznets Curve (EKC) hypothesis indicates that at a threshold level of per capita income, countries reach a level of development where environmental improvements are achieved, but these studies have a serious flaw. Because they only focus on GDP per capita as a key variable to achieve environmental improvements and ignore the social dimension which is considered the pillar of sustainable development. Since the human development index includes the simultaneous description of social development and economic development, therefore, in this research, the Human Development Index is used instead of GDP per capita to investigate the Environmental Kuznets Curve (EKC) hypothesis and the relationship between HDI and the quality of the environment. Furthermore, political institutions can have a long-term direct impact on the environment and its sustainability. Therefore, investigating whether the indicators of human development, political and civil liberties can affect the quality of the environment, can be important.
Method
In the present study, the effects of human development, political and civil liberties indicators on the environmental performance index (Ecological Footprint) in developing countries and developed countries are investigated using the System Generalized Method of Moments method (GMM-SYS). Then the Environmental Kuznets Curve hypothesis is investigated in selected countries. Likely, a country that has benefited from more ecological capital for its needs in the past will be more prone to environmental destruction and use of ecological resources in the future. Therefore, it is necessary to investigate the impact of the variable interruption of the ecological footprint on its value in the current year. Accordingly, in this research, the method of the System generalized moments is used, which helps to solve the possible problems of endogeneity caused by the existence of an interval of the ecological footprint variable as an independent variable by using instrumental variables.
The Generalized Moments' estimator is used in cases where the independent variables of the model are not completely exogenous. This estimator controls for the endogeneity problem by using instruments from the intercept of the dependent variable or the intercept of any other endogenous variable that is assumed to be uncorrelated with the fixed effects. The validity of the tools used in the model can be measured using the j-Hansen (1982) and Arellano and Bond AR (2) tests.
Findings
The results of the research indicate that the Human Development Index in selected developing and developed countries has a significant and negative effect on the ecological footprint, and a higher human development index is useful for improving the quality of the environment and reduces of pollutant emissions. Therefore, when the level of income, education, and health services in a country improves, the awareness of the importance of a safe and quality environment will increase. Similarly, according to the results of the Kuznets hypothesis, the relationship between the Human Development Index and the ecological footprint in the studied countries, confirms the hypothesis of Kuznets and the inverted U.
The index of political development and civil liberties has a negative and significant effect on the ecological footprint in both developing and developed countries. It seems that the increase in civil liberties, higher democracy, and improvement of political rights will reduce the damage to the environment.
The results suggest that with the increase in the consumption of fossil fuels, more pollutants are released into the environment, which leads to the destruction of the environment and harming it. Based on the results of the research, it can be said that trade liberalization and active international trade allow the transfer of newer technologies to developing countries that produce fewer pollutants. In addition, increasing urbanization in developing countries has a negative impact on the quality of the environment, but countries that focus more on economic development and scale can improve the quality of the environment by promoting the use of advanced technologies in parallel with urbanization.
Discussion and Conclusion
The findings of the research indicate that policymakers are more likely to achieve sustainable economic development by improving the level of the human development index. Therefore, providing education and a health care system for all members of society can lead to the reduction of environmental degradation through the improvement of the human development index; Thus, increasing democracy, clarifying laws and regulations, freedom of assembly, freedom of the media and awareness can control corruption and prevent the personal use of natural and environmental resources by officials and powerful people.
Policies such as pollution tax, green tax, development of energy-saving vehicles, and replacing them with worn-out vehicles can reduce energy consumption and reduce the emission of pollutants in the environment. Furthermore, increasing the degree of trade openness allows the entry of advanced and improved technologies that produce less pollution. Therefore, policymakers in developing countries are advised to import clean and renewable energy technologies to their country by increasing active international trade.
Keywords: Human Development Indicator, Political Development Indicator, Ecological Footprint, Environmental Kuznets Curve (EKC) Hypothesis, Systemic Generalized Method of Moments
JEL Classification: F18, O13, P28, P48, Q56
Dr Samad Hekmati Farid, Mrs. Fatemeh Havasbeigi, Mr. Ali Moridian,
Volume 24, Issue 1 (3-2024)
Volume 24, Issue 1 (3-2024)
Abstract
Introduction:
As Stern et al (2019) argued, energy is considered an important determinant of sustainable economic growth. Energy sources meet the needs of various sectors such as industry, modern agriculture, commerce, transportation, etc. Therefore, electricity consumption (energy consumption) is vital for the growth of an economy.
Electricity is the backbone of today's industrial and consumer economies. Its share in the energy mix is increasing due to increasing per capita income, electrification of transportation, use of electronic devices, and demand for consumer and industrial products. However, developed countries are moving towards energy efficiency technology to offset the increasing demand for electricity and its effects (Bildirici et al., 2012). Discussions about the relationship between economic growth, energy consumption and some macroeconomic variables have been high among researchers and policymakers in recent decades (Ehigiamusoe and Lean, 2019; Ehigiamusoe et al., 2020). The aim of our study is to examine the dynamics of the relationship between electricity consumption, ecological footprint and real GDP in Iran by dividing GDP into oil GDP and non-oil GDP. The logic behind this is that Iran's growth model is dependent on oil exports and public sector spending, with no diversification of oil revenues to ensure sustainable development. In fact, although Iran's successive development plans have emphasized the diversification and promotion of the non-oil private sector as a priority goal, today this goal can be achieved by reducing dependence on oil. Our aim is to provide a comprehensive review of energy consumption-environment-GDP dynamics with oil on one hand and energy-environment-GDP non-oil dynamics on the other hand. Therefore, we address the dichotomy between the oil and non-oil sectors and its consequences on the efficiency of energy policies and sustainable development.
Methodology:
This study uses the Vector Auto-Regressive model of time-varying parameters (TVP-VAR) to examine the inter-temporal dynamics between Iran's real GDP (oil, non-oil), electricity consumption and ecological footprint during 1967-2018. The results show that the TVP-VAR model is useful for examining the dynamics of the relationship between electricity consumption, real GDP and ecological footprint.
Results and Discussion:
The results show that the reaction functions of GDP with oil to positive shocks of environmental effect and electricity consumption are significantly different over time. Similar results exist for the impulse responses of the environmental effect to the positive shock of electricity consumption and GDP. We find the positive response of GDP to electricity consumption before 1978, negative between 1979 and 1991 and after 2003. The reactions of domestic gross production to environmental impact shocks between 1979 and 1986 are negative in the 8th and 12th period horizons and positive in other periods.
The shock response of energy consumption to GDP is positive in four periods during 1981 to 2006 and is negative in other years. It is negative in the 8-period horizon between 1976 and 2004, as well as in the 12-period horizon between 1971 and 1999 and positive in other years.
In relation to the response functions of the environmental impact of GDP and energy consumption in the horizon of 4 periods, the effect is positive, but it is positive in the horizon of 8 periods except for the years 1994-2000 and in the horizon of 12 periods except for the years 1979 to 1999 positive effects are observed.
Conclusion:
The results show that regimes with high and low volatility of real GDP (oil and non-oil), electricity consumption and environmental impact shocks have asymmetric effects (positive or negative) on these variables. In particular, the high fluctuations in electricity consumption during 1980s, 2000s, and 2010s likely affect real oil GDP and the environmental effect, negatively, But negatively, it leads to a decrease in real non-oil GDP growth. In the 1981s, 2001s, and 2011s, low volatility of electricity consumption had a negative impact on environmental impact, and low volatility of real oil and non-oil GDP had a positive impact on environmental impact.
In addition, real oil GDP fluctuations in the 1980s and 1990s both have positive effects on electricity consumption. The low real non-oil GDP fluctuations likely have positive effects on environmental effect, and real non-oil GDP fluctuations have positive effects on electricity consumption, but high real non-oil GDP fluctuations have negative effects on environmental status.
As Stern et al (2019) argued, energy is considered an important determinant of sustainable economic growth. Energy sources meet the needs of various sectors such as industry, modern agriculture, commerce, transportation, etc. Therefore, electricity consumption (energy consumption) is vital for the growth of an economy.
Electricity is the backbone of today's industrial and consumer economies. Its share in the energy mix is increasing due to increasing per capita income, electrification of transportation, use of electronic devices, and demand for consumer and industrial products. However, developed countries are moving towards energy efficiency technology to offset the increasing demand for electricity and its effects (Bildirici et al., 2012). Discussions about the relationship between economic growth, energy consumption and some macroeconomic variables have been high among researchers and policymakers in recent decades (Ehigiamusoe and Lean, 2019; Ehigiamusoe et al., 2020). The aim of our study is to examine the dynamics of the relationship between electricity consumption, ecological footprint and real GDP in Iran by dividing GDP into oil GDP and non-oil GDP. The logic behind this is that Iran's growth model is dependent on oil exports and public sector spending, with no diversification of oil revenues to ensure sustainable development. In fact, although Iran's successive development plans have emphasized the diversification and promotion of the non-oil private sector as a priority goal, today this goal can be achieved by reducing dependence on oil. Our aim is to provide a comprehensive review of energy consumption-environment-GDP dynamics with oil on one hand and energy-environment-GDP non-oil dynamics on the other hand. Therefore, we address the dichotomy between the oil and non-oil sectors and its consequences on the efficiency of energy policies and sustainable development.
Methodology:
This study uses the Vector Auto-Regressive model of time-varying parameters (TVP-VAR) to examine the inter-temporal dynamics between Iran's real GDP (oil, non-oil), electricity consumption and ecological footprint during 1967-2018. The results show that the TVP-VAR model is useful for examining the dynamics of the relationship between electricity consumption, real GDP and ecological footprint.
Results and Discussion:
The results show that the reaction functions of GDP with oil to positive shocks of environmental effect and electricity consumption are significantly different over time. Similar results exist for the impulse responses of the environmental effect to the positive shock of electricity consumption and GDP. We find the positive response of GDP to electricity consumption before 1978, negative between 1979 and 1991 and after 2003. The reactions of domestic gross production to environmental impact shocks between 1979 and 1986 are negative in the 8th and 12th period horizons and positive in other periods.
The shock response of energy consumption to GDP is positive in four periods during 1981 to 2006 and is negative in other years. It is negative in the 8-period horizon between 1976 and 2004, as well as in the 12-period horizon between 1971 and 1999 and positive in other years.
In relation to the response functions of the environmental impact of GDP and energy consumption in the horizon of 4 periods, the effect is positive, but it is positive in the horizon of 8 periods except for the years 1994-2000 and in the horizon of 12 periods except for the years 1979 to 1999 positive effects are observed.
Conclusion:
The results show that regimes with high and low volatility of real GDP (oil and non-oil), electricity consumption and environmental impact shocks have asymmetric effects (positive or negative) on these variables. In particular, the high fluctuations in electricity consumption during 1980s, 2000s, and 2010s likely affect real oil GDP and the environmental effect, negatively, But negatively, it leads to a decrease in real non-oil GDP growth. In the 1981s, 2001s, and 2011s, low volatility of electricity consumption had a negative impact on environmental impact, and low volatility of real oil and non-oil GDP had a positive impact on environmental impact.
In addition, real oil GDP fluctuations in the 1980s and 1990s both have positive effects on electricity consumption. The low real non-oil GDP fluctuations likely have positive effects on environmental effect, and real non-oil GDP fluctuations have positive effects on electricity consumption, but high real non-oil GDP fluctuations have negative effects on environmental status.
Dr Bakhtiar Javaheri, Dr Saman Ghaderi, Mrs. Nikoo Ghomashi, Mr. Ramin Amani,
Volume 24, Issue 1 (3-2024)
Volume 24, Issue 1 (3-2024)
Abstract
Economic growth is one of the most common goals in both developed and developing countries. Economic growth affects various economic and social aspects, such as poverty, welfare, unemployment, and inflation. Knowing the factors influencing economic growth is critical for developing countries. Trade of goods and services affects economic growth by increasing national income. On the other hand, nowadays, the world is facing the climate change crisis and its consequences, such as floods, landslides, earthquakes, etc., which can have negative and destructive effects on economic growth. Oil exporting countries have weak export diversity due to single-product trade and are located in the hot and dry orbit of the globe due to their geographical location. The main goal of this study is to investigate the impact of economic complexity as a symbol of international trade and ecological footprint as a symbol of climate change on economic growth in OPEC from 1995 to 2020 and using the method of generalized method of moments (GMM). The results indicate a positive and very significant effect of the economic complexity index on economic growth in oil-exporting countries. On the other hand, the ecological footprint has a negative and significant impact on economic growth in OPEC.
Introduction:
Economic growth and development are main goals in developing countries, because achieving growth and development can increase living standards, increase people's well-being, reduce the level of poverty and unemployment, and consequently strengthen the foundations of governments. Knowing the factors affecting economic growth is one of the critical goals of economic policymakers (Rahimi et al., 2020). In previous studies, much research has focused on the influence of capital, labor, and productivity on economic growth. However, less attention has been paid to other factors. Today, it is clear that export diversification, which is an essential criterion of economic complexity, has a substantial effect on economic growth. On the other hand, the world today is facing climate change, which results from destructive human activities and has very adverse effects on economic growth. Therefore, the main goal of this research is to investigate the effect of economic complexity and ecological footprint on economic growth in OPEC from 1995 to 2020 using the generalized method of moments. In this research, the effect of economic complexity on economic growth in the developing countries of the OPEC organization has been investigated for the first time. On the other hand, in this innovative research, the ecological footprint variable was used to proxy climate change.
Methodology:
There are two methods for estimating model in dynamic panel data. The basic premise of GMM is called the first-order differential method. By imposing some changes to the first-order differential GMM method, the orthogonal deviation GMM method was obtained. In this research, both one- and two-step methods have been used to prevent single effects. Two tests are proposed to ensure the appropriateness of using this method for estimating the model. Initially, the Sargan test is used to demonstrate the validity of instrumental variables. The second test includes the first-order correlation test AR (1) and the second-order AR (2).
Results and Discussion:
The economic complexity index (ECI) in all three models with fixed effects, single-stage GMM, and two-stage GMM has a positive and significant effect on economic growth in OPEC. A one-unit increase in the economic complexity index increases the economic growth of OPEC by 0.028 units in the fixed effects model, 0.032 units in the single-stage GMM, and 0.154 units in the two-stage GMM. The ecological footprint (EF) index in three mentioned models has a negative and significant effect on economic growth in OPEC. A one-unit increase in the ecological footprint index causes a decrease of -0.013 units in the model with fixed effects, -0.038 units in the single-stage GMM, and -0.087 units in the two-stage GMM. The labor force (L), as the main variables of the Solo growth model, has a positive and significant effect on economic growth in OPEC in all models. A one-unit increase in the labor force index causes economic growth by 0.029, 0.028, and 0.055 in models with fixed effects, one-stage GMM, and two-stage GMM, respectively. Gross fixed capital, which is used as capital (K) in this study, has a positive and significant effect on economic growth in OPEC in all three models. A one-unit increase in capital causes an increase in the economic growth of OPEC by 0.017 units in the model with fixed effects, 0.054 units in the single-stage GMM, and 0.163 units in the two-stage GMM, respectively. Productivity of production factors (T), which is also used as technology in some research, has a positive and significant effect on economic growth in OPEC so that a one-unit increase in productivity of production factors causes an increase in economic growth by 0.009, 0.044 and 0.072 units, respectively in the model with fixed effects, single-stage GMM and two-stage GMM.
Conclusion:
The results of the present study showed that in all three fixed effects models, one-stage GMM and two-stage GMM, the economic complexity index has a positive and significant effect on economic growth in OPEC. With the increase in economic complexity, countries' knowledge, technology, and innovation in producing various goods and services will increase. As a result, exports and economic growth will be positively affected. On the other hand, the economic complexity index, in addition to creating a positive effect on quantitative indicators, has a positive effect on qualitative indicators, including the quality of human resources, innovation, savings, and increasing productivity, which can again increase economic growth. On the other hand, in all three models of fixed effects, one-stage GMM and two-stage GMM, the ecological footprint index significantly negatively affects economic growth in OPEC. An increase in the ecological footprint index means the increase in the use of all the planet's natural resources to meet a country's needs, including food, clothing, housing, etc. With the increase in the use of land resources and in the long-term time horizon, the climate change crisis can increase. With the increase in floods, global warming, landslides, and other natural disasters, economic growth will be negatively affected.
Introduction:
Economic growth and development are main goals in developing countries, because achieving growth and development can increase living standards, increase people's well-being, reduce the level of poverty and unemployment, and consequently strengthen the foundations of governments. Knowing the factors affecting economic growth is one of the critical goals of economic policymakers (Rahimi et al., 2020). In previous studies, much research has focused on the influence of capital, labor, and productivity on economic growth. However, less attention has been paid to other factors. Today, it is clear that export diversification, which is an essential criterion of economic complexity, has a substantial effect on economic growth. On the other hand, the world today is facing climate change, which results from destructive human activities and has very adverse effects on economic growth. Therefore, the main goal of this research is to investigate the effect of economic complexity and ecological footprint on economic growth in OPEC from 1995 to 2020 using the generalized method of moments. In this research, the effect of economic complexity on economic growth in the developing countries of the OPEC organization has been investigated for the first time. On the other hand, in this innovative research, the ecological footprint variable was used to proxy climate change.
Methodology:
There are two methods for estimating model in dynamic panel data. The basic premise of GMM is called the first-order differential method. By imposing some changes to the first-order differential GMM method, the orthogonal deviation GMM method was obtained. In this research, both one- and two-step methods have been used to prevent single effects. Two tests are proposed to ensure the appropriateness of using this method for estimating the model. Initially, the Sargan test is used to demonstrate the validity of instrumental variables. The second test includes the first-order correlation test AR (1) and the second-order AR (2).
Results and Discussion:
The economic complexity index (ECI) in all three models with fixed effects, single-stage GMM, and two-stage GMM has a positive and significant effect on economic growth in OPEC. A one-unit increase in the economic complexity index increases the economic growth of OPEC by 0.028 units in the fixed effects model, 0.032 units in the single-stage GMM, and 0.154 units in the two-stage GMM. The ecological footprint (EF) index in three mentioned models has a negative and significant effect on economic growth in OPEC. A one-unit increase in the ecological footprint index causes a decrease of -0.013 units in the model with fixed effects, -0.038 units in the single-stage GMM, and -0.087 units in the two-stage GMM. The labor force (L), as the main variables of the Solo growth model, has a positive and significant effect on economic growth in OPEC in all models. A one-unit increase in the labor force index causes economic growth by 0.029, 0.028, and 0.055 in models with fixed effects, one-stage GMM, and two-stage GMM, respectively. Gross fixed capital, which is used as capital (K) in this study, has a positive and significant effect on economic growth in OPEC in all three models. A one-unit increase in capital causes an increase in the economic growth of OPEC by 0.017 units in the model with fixed effects, 0.054 units in the single-stage GMM, and 0.163 units in the two-stage GMM, respectively. Productivity of production factors (T), which is also used as technology in some research, has a positive and significant effect on economic growth in OPEC so that a one-unit increase in productivity of production factors causes an increase in economic growth by 0.009, 0.044 and 0.072 units, respectively in the model with fixed effects, single-stage GMM and two-stage GMM.
Conclusion:
The results of the present study showed that in all three fixed effects models, one-stage GMM and two-stage GMM, the economic complexity index has a positive and significant effect on economic growth in OPEC. With the increase in economic complexity, countries' knowledge, technology, and innovation in producing various goods and services will increase. As a result, exports and economic growth will be positively affected. On the other hand, the economic complexity index, in addition to creating a positive effect on quantitative indicators, has a positive effect on qualitative indicators, including the quality of human resources, innovation, savings, and increasing productivity, which can again increase economic growth. On the other hand, in all three models of fixed effects, one-stage GMM and two-stage GMM, the ecological footprint index significantly negatively affects economic growth in OPEC. An increase in the ecological footprint index means the increase in the use of all the planet's natural resources to meet a country's needs, including food, clothing, housing, etc. With the increase in the use of land resources and in the long-term time horizon, the climate change crisis can increase. With the increase in floods, global warming, landslides, and other natural disasters, economic growth will be negatively affected.
Mrs Fatemeh Arianfar, Dr Zahra (mila) Elmi,
Volume 24, Issue 2 (5-2024)
Volume 24, Issue 2 (5-2024)
Abstract
Introduction:
Economic stability via Information and Communication Technology (ICT) has sparked interesting discussions among scholars. ICT plays a crucial role in realizing sustainable development objectives. Globally, the prospective advantages of ICT are widely acknowledged. Some research has solely emphasized ICT's role in mitigating air pollution, but the ecological implications of ICT have largely been overlooked. This article is pioneering in domestic studies of ICT's influence on ecological footprint. In addition, the present research uniquely computes the ICT index through the principal component method, distinguishing it from other ICT studies conducted within Iran. In recent times, the ecological footprint has been embraced as a broader gauge for assessing environmental damage. One reason for this choice is that other environmental harm indicators, such as air and water pollution, deforestation, and others, only represent a part of the total environmental degradation. However, the ecological footprint index incorporates diverse elements like agricultural lands, pastures, fishing areas, forests, carbon footprint, and constructed lands, hence offering a more holistic measure. Concerning the topic in question, it is evident from national studies that there has been little research on identifying the factors contributing to the ecological footprint.
Methodology:
In this research, we investigate the impact of the information and communication technology (ICT) index on selected oil-exporting countries' ecological footprint from 2006 to 2020. To do this, we use the generalized moments method. We extracted the model of this research from the studies of Higon et al. (2017) and Caglar et al. (2021) for carbon dioxide emissions. The variables of our study include the ecological footprint (as the dependent variable), the information and communication technology index (an explanatory variable calculated using the principal component analysis (PCA) method), and control variables such as GDP per capita, exports of goods and services, financial development, and economic Complexity Index which is chosen on the review of other studies. The data used for this study are taken from databases such as the World Bank and the Global Resource Footprint Network and the Atlas of Economic Complexity.
Discussion and Conclusion:
Given the challenges posed by global warming to current and future generations, this study aims to explore the impact of Information and Communication Technology (ICT) on the ecological footprint in chosen oil-exporting nations. This study studied the inverse U relationship of the information and communication technology index with the emission of ecological footprints from 2006 to 2020. The ecological footprint is an index of the amount of environmental pollution and a more comprehensive index than CO2. A data description was undertaken before estimating the model. The research model, built on theoretical underpinnings and past studies, was structured, and estimated by the Generalized Moments Method.
The findings showed a non-linear connection between ICT and the ecological footprint in oil-exporting countries. ICT augments the ecological footprint per capita before a certain threshold, but it begins to diminish after that.
The positive and significant coefficient of GDP per capita indicates the increase in ecological footprint per capita for the increase of GDP per capita. This result indicates that economic activities such as industrialization and development cause the exploitation of natural resources, which causes more pollution.
Financial development has had a positive and significant effect on the ecological footprint. To prevent the destructive effect of financial development on the environment, governments in selected oil-exporting countries should develop financial markets in such a way that financial resources are available for investing in projects that help introduce clean energy technologies.
The economic complexity index has had a negative and significant effect on the per capita ecological footprint. In fact, the expansion of economic complexity in the studied countries will lead to the reduction of the ecological footprint. According to the obtained result, the economic complexity index can be considered as one of the ecological footprint control factors; Therefore, the production of more complex goods that contain higher technology can lead to a reduction in energy consumption and ecological footprint; Therefore, governments can provide tax exemptions and subsidies for those companies that use new technology and clean energy, and also support knowledge-based products.
The influence of goods and services exports on the ecological footprint has been negative and substantial. The significance of the quality and diversity of exported goods regarding environmental destruction has not yet been thoroughly considered. Therefore, the focus should be on enhancing the quality of export goods via cleaner production methods. Overall energy consumption should also be reduced in all countries, with policymakers prioritizing the use of renewable energy resources and promoting the reduction of fossil-fuel energy export products.
The influence of urban population growth on the ecological footprint has been positive and substantial. Essentially, uncontrolled population growth, especially in developing countries, creates grave issues including scarcity of food, poor air and water quality, environmental contamination, degradation of the ecological structure, waste disposal problems, and high energy usage.
Economic stability via Information and Communication Technology (ICT) has sparked interesting discussions among scholars. ICT plays a crucial role in realizing sustainable development objectives. Globally, the prospective advantages of ICT are widely acknowledged. Some research has solely emphasized ICT's role in mitigating air pollution, but the ecological implications of ICT have largely been overlooked. This article is pioneering in domestic studies of ICT's influence on ecological footprint. In addition, the present research uniquely computes the ICT index through the principal component method, distinguishing it from other ICT studies conducted within Iran. In recent times, the ecological footprint has been embraced as a broader gauge for assessing environmental damage. One reason for this choice is that other environmental harm indicators, such as air and water pollution, deforestation, and others, only represent a part of the total environmental degradation. However, the ecological footprint index incorporates diverse elements like agricultural lands, pastures, fishing areas, forests, carbon footprint, and constructed lands, hence offering a more holistic measure. Concerning the topic in question, it is evident from national studies that there has been little research on identifying the factors contributing to the ecological footprint.
Methodology:
In this research, we investigate the impact of the information and communication technology (ICT) index on selected oil-exporting countries' ecological footprint from 2006 to 2020. To do this, we use the generalized moments method. We extracted the model of this research from the studies of Higon et al. (2017) and Caglar et al. (2021) for carbon dioxide emissions. The variables of our study include the ecological footprint (as the dependent variable), the information and communication technology index (an explanatory variable calculated using the principal component analysis (PCA) method), and control variables such as GDP per capita, exports of goods and services, financial development, and economic Complexity Index which is chosen on the review of other studies. The data used for this study are taken from databases such as the World Bank and the Global Resource Footprint Network and the Atlas of Economic Complexity.
Discussion and Conclusion:
Given the challenges posed by global warming to current and future generations, this study aims to explore the impact of Information and Communication Technology (ICT) on the ecological footprint in chosen oil-exporting nations. This study studied the inverse U relationship of the information and communication technology index with the emission of ecological footprints from 2006 to 2020. The ecological footprint is an index of the amount of environmental pollution and a more comprehensive index than CO2. A data description was undertaken before estimating the model. The research model, built on theoretical underpinnings and past studies, was structured, and estimated by the Generalized Moments Method.
The findings showed a non-linear connection between ICT and the ecological footprint in oil-exporting countries. ICT augments the ecological footprint per capita before a certain threshold, but it begins to diminish after that.
The positive and significant coefficient of GDP per capita indicates the increase in ecological footprint per capita for the increase of GDP per capita. This result indicates that economic activities such as industrialization and development cause the exploitation of natural resources, which causes more pollution.
Financial development has had a positive and significant effect on the ecological footprint. To prevent the destructive effect of financial development on the environment, governments in selected oil-exporting countries should develop financial markets in such a way that financial resources are available for investing in projects that help introduce clean energy technologies.
The economic complexity index has had a negative and significant effect on the per capita ecological footprint. In fact, the expansion of economic complexity in the studied countries will lead to the reduction of the ecological footprint. According to the obtained result, the economic complexity index can be considered as one of the ecological footprint control factors; Therefore, the production of more complex goods that contain higher technology can lead to a reduction in energy consumption and ecological footprint; Therefore, governments can provide tax exemptions and subsidies for those companies that use new technology and clean energy, and also support knowledge-based products.
The influence of goods and services exports on the ecological footprint has been negative and substantial. The significance of the quality and diversity of exported goods regarding environmental destruction has not yet been thoroughly considered. Therefore, the focus should be on enhancing the quality of export goods via cleaner production methods. Overall energy consumption should also be reduced in all countries, with policymakers prioritizing the use of renewable energy resources and promoting the reduction of fossil-fuel energy export products.
The influence of urban population growth on the ecological footprint has been positive and substantial. Essentially, uncontrolled population growth, especially in developing countries, creates grave issues including scarcity of food, poor air and water quality, environmental contamination, degradation of the ecological structure, waste disposal problems, and high energy usage.
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