Ecological footprint, globalization, and economic growth: evidence from Asia

This study aims to investigate the relationship between environmental rationality and economic activities that accelerate environmental indicators in Asia. In the ecosphere, the environment is a predator of human consumption. The continent Asia holding more than 60% of the world's population is vulnerable to environmental deployment. The purpose of the study is to find the link between economic growth, globalization, biocapacity, energy intensity, and renewable energy to the ecological footprint (EFP) in Asian countries for the period of 1990-2017. For empirics, the econometric techniques applied are panel OLS, fixed effects, random effects, fully modified-OLS, DOLS, and generalized methods of moments techniques. The results prove that by increasing the share of renewable energy in total energy consumption the environmental quality is improved. The Pedroni cointegration test shows a long-term relationship exists between globalization, economic growth, and the environment. The results of all techniques show the similar effectiveness of all used economic indicators in the model that disturbs the environment with different intensities in each test. The results of FM-OLS show that with a 1% increase in economic growth, globalization, biocapacity, and population density the ecological footprint increases by 0.55%, 0.08%, 0.06%, and 0.03%, respectively. However, renewable energy improves the environment by 0.04%. The Granger causality analysis revealed a bidirectional causality between ecological footprint and globalization and between EFP and energy intensity. This study recommends that Asian countries should make sustainable environmental policies to protect the environment from further damage.