The impact of economic growth on environmental degradation in Middle East region: application of ecological footprint

This study examines the effects of economic growth, energy consumption, biological capacity and trade openness on the ecological footprint (EF) of consumption as index of environmental degradation using a panel data during the period 1990–2013. A number of panel unit root tests confirm that the data are first-difference stationary. Results from Pedroni and Kao panel co-integration tests show that the variables are co-integrated. Therefore, the panel Fully Modified Ordinary Least Square (FMOLS) method is then employed to estimate the long run relationship between the variables. The results indicate a positive and significant relationship between ecological footprint (EF) and biological capacity, and a negative and insignificant impact of trade openness on EF. Energy consumption is also led to increase EF. The results showed the N-shape relationship between EF and economic growth. Therefore, economic growth will lead to further environmental degradation in this region.