Club convergence analysis of ecological and carbon footprint: evidence from a cross-country analysis

Abstract

This study examines the convergence hypothesis of per capita ecological footprint (PCEF) and per capita carbon footprint (PCCF) for a sample of 77 countries covering the period 1961–2014. In particular, we study whether countries are moving toward a common steady-state equilibrium condition or converging into different groups. To do so, this study used the Phillips and Sul technique. The results do not support the convergence of full sample or similar environmental quality; instead, we find two different steady-state (or club convergence) equilibriums for PCEF and PCCF. Further, our results show that countries which have the lowest PCEF and PCCF are converging (growing) faster than those countries which have the highest PCEF and PCCF. Finally, the speed of convergence of PCEF for club 1 is noted at around 0.126% while for club 2, it is 0.165%. Hence, the climate change policies need to be designed by following the club convergence of the sample countries.AbbreviationsCO2Carbon dioxideEKCEnvironmental Kuznets curveEUEuropean UnionEFEcological footprintG20Group of twentyGHGsGreenhouse gasesIPCCIntergovernmental panel on climate changeOECDOrganization for economic co-operation and developmentPCEFPer capita ecological footprintPCCFPer capita carbon footprintPSPhillips and SulUNDPUnited Nations development programme