Environmental Kuznets curve revisited: An analysis using ecological and material footprint

Abstract

• The relationship between economic growth and ecological and material footprint has been analyzed. • Panel data of Asian countries and sub-panel of Asian countries have been taken. • PMG, DOLS and GMM model has been applied for log-run estimates. • EKC in ecological footprint exist in case of whole panel with Central-and East Asian sub- panel. • EKC in material footprint exist in case of whole and sub-panel except for central Asian panel. The study employed ecological and material footprint from the consumption perspective as a holistic measure of human pressure on the environment to examine the environment-economic growth nexus. Particularly, Environmental Kuznets curve hypothesis has been tested for the group of thirty-seven Asian countries. These are further analyzed into five Asian sub-regions, namely; West-, Central-, South-, East-and Southeast Asian countries over the period of 1991 to 2017. Panel cointegration, Pooled mean group, dynamic ordinary least square and differenced panel generalized methods of moments have been applied. The analysis reveals a mixture of results for the presence of EKC when using ecological footprint. EKC exists for Central-and East Asian countries, but not in case of West-, South-and Southeast Asian countries. Whereas results support EKC when we used material footprint indicator except central Asia. Energy consumption increases the ecological and material footprint. In addition, overall globalization and urbanization enhances ecological and material footprint. From the outcome of this empirical work, a number of policy recommendations have been discussed.