Closer together or farther apart: are there club convergence in ecological footprint?

Abstract

This study empirically tests whether there is evidence of convergence in ecological footprint among 189 countries for the period 1990-2017. Using the novel log (t) regression model that accommodates likely transitional heterogeneity in the panel, the results provide evidence for the divergence of ecological footprint (EF) for the world sample. A similar empirical outcome was obtained for sub-Saharan Africa (SSA), Europe and Central Asia (ECA), East Asia and Pacific (EAP), Latin America and the Caribbean (LAC), and Middle East and North Africa (MENA). Nevertheless, the study found three convergence clubs for the world sample, SSA, ECA, and LAC, while two clubs were found for EAC and MENA. Further empirical results from the ordered logit and probit model suggest initial EF and natural resource utilization are the most critical driver of club membership in SSA. Since we established three club formations, the study recommends different environmental protection policies should be adopted for the countries in these convergence clubs. It is also important for SSA governments to implement strong environmental regulations in respect of the exploitation of resources.