Testing the long-run impact of economic growth, energy consumption, and globalization on ecological footprint: new evidence from Fourier bootstrap ARDL and Fourier bootstrap Toda-Yamamoto test results.

The aim of this study is to investigate the impacts of economic growth, energy consumption, and the economic globalization process on ecological footprints in the top 10 countries that cause the highest carbon dioxide emissions in the world. The analyses were conducted on annual observations from 1970 to 2017 (a different range for each country) employing the Fourier bootstrap ARDL cointegration method developed by Yilanci et al. (2020) and the Fourier bootstrap Toda-Yamamoto causality method developed by Nazlioglu et al. (2016). In the cointegration approach, an additional F-test provides better insights to define degenerate cases and the bootstrap test performance is powerful than the asymptotic test. In this context, Fourier bootstrap ARDL test results revealed that there is a long-term relationship between ecological footprint and economic growth, energy consumption, and economic globalization in seven countries-namely, Canada, China, Germany, India, Indonesia, Iran, and Saudi Arabia. According to long-run coefficients, in general, economic growth and energy consumption have negative effects on ecological footprint, whereas economic globalization has a positive effect on the ecological footprint for these countries. To evaluate it more specifically, (i) real gross domestic product per capita has positive and statistically significant coefficients on the ecological footprint in China, India, Indonesia, Iran, and Saudi Arabia, except for Germany. (ii) Energy consumption per capita also has positive and statistically significant coefficients on the ecological footprint in China, Germany, Iran, and Saudi Arabia, except for Indonesia. (iii) Finally, the economic globalization process has negative and statistically significant coefficients on the ecological footprint in Canada, China, India, and Saudi Arabia, except for Indonesia. On the other hand, Fourier bootstrap Toda-Yamamoto causality test results show a mixed character. Governments should take action to reduce the negative effects of the climate crisis as immediate as possible, which has been widely expressed recently. Among these, increasing the use of renewable energy sources and new carbon-free technologies in the production process appears as important policy tools.

Testing the long-run effects of economic growth, financial development and energy consumption on CO2 emissions in Turkey: new evidence from RALS cointegration test.

This study analyses the long-run effects of economic growth, energy consumption and financial development on carbon dioxide (CO2) emissions in Turkey using annual time series data for the period 1965-2018. This research investigates the relationship between the variables using a RALS-EG (residual augmented least squares-Engle and Granger) cointegration test procedure developed by Lee et al. Stud Nonlinear Dyn Econ 19:397-413, (2015). In addition, this study uses a bootstrap causality analysis developed by Hacker and Hatemi-J J Econ Stud 39:144-160, (2012) to specify the causal relationship between the series. RALS cointegration test results show a long-run relationship between CO2 emissions and economic growth, energy consumption and financial development. According to a dynamic ordinary least squares estimation, economic growth has a negative and statistically significant effect on CO2 emissions, whereas energy consumption and financial development have positive and statistically significant effects on CO2 emissions in the long run. In particular, energy consumption is the most effective parameter of environmental pollution in Turkey. However, the causality test results indicate a unidirectional causal relationship from financial development to CO2 emissions, economic growth and energy consumption. Increasing the investment in renewable energy sources will be an effective policy tool to improve the environmental quality in Turkey.