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Does globalization increase the ecological footprint? Empirical evidence from Malaysia
Zahoor Ahmed1, Zhaohua Wang2,3,4,5,6, Faisal Mahmood7
1School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China. zahoorahmed83@yahoo.com.
Summary
Globalization does not significantly impact Malaysia's ecological footprint, but it does increase the carbon footprint. Energy consumption and economic growth are key drivers, while population density and financial development offer mitigation.
Area of Science:
- Environmental Science
- Economics
Background:
- The ecological footprint is a critical indicator of environmental sustainability.
- Understanding the drivers of ecological and carbon footprints is essential for policy-making.
Purpose of the Study:
- To investigate the relationship between globalization and the ecological footprint in Malaysia.
- To analyze the impact of economic growth, energy consumption, population density, and financial development on environmental footprints.
Main Methods:
- The study employed the Bayer and Hanck cointegration test and the Autoregressive Distributed Lag (ARDL) bound test.
- Time-series data from 1971 to 2014 for Malaysia were utilized.
Main Results:
- Cointegration was confirmed among the variables.
- Globalization significantly increases the carbon footprint but not the overall ecological footprint.
- Energy consumption and economic growth positively influence both footprints, while population density and financial development have mitigating effects.
Conclusions:
- Globalization's impact on Malaysia's environmental footprint is nuanced, with a notable effect on carbon emissions.
- Policy interventions should focus on managing energy consumption and economic growth to reduce environmental pressures.
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