Effects of globalization, economic growth, financial development on ecological footprint in Iran (quantile regression analysis)

Subject Areas : Environmental managment

Maryam  Mohammadi Nia ¹ (PhD student of Economic Development, Department of Economic Sciences, Central Tehran Branch, Islamic Azad University, Tehran, Iran.)
Gholamreza  Abbasi ² (Assistant Professor, Department of Economic Sciences, Central Tehran Branch, Islamic Azad University, Tehran, Iran. *(Corresponding author))
Bijan  Basri ³ (Assistant Professor, Department of Economic Sciences, Central Tehran Branch, Islamic Azad University, Tehran, Iran.)
Reza  Rahimi ⁴ (Assistant Professor, Department of Economic Sciences, Central Tehran Branch, Islamic Azad University, Tehran, Iran.)

Received: 2023-07-08 Accepted : 2023-08-16 Published : 2023-09-23

Keywords: Quantile regression, Financial Development, Ecological footprint, Globalization, Economic growth,

Abstract :

Background and Objective: Economic growth and financial development have brought unfortunate consequences, especially in the field of environment and natural resources, because most of the economic activities are closely related to the environment, and in fact, it can be said that the fate of the environment and the economic growth of societies are dependent on each other. In this study, the effects of globalization, economic growth, and financial development on the ecological footprint in Iran have been investigated. Material and Methodology: Quantile regression model was used for this research and for the time period of 1360-1400. This method has gradually become a comprehensive method for statistical analysis of linear and non-linear models of response variables in different fields. Findings: Based on the results; in the first and second (lower) quadrants; Economic globalization, economic growth, energy consumption, financial development, and population density have a positive effect on Iran's ecological footprint, and from the third and fourth quarters onwards, the intensity of its influence on Iran's ecological footprint increases. In other words, the indicators of globalization, economic growth and financial development in the first quarter (Q25) and second quarter (Q50) have a positive temporal correlation with Iran's ecological footprint. Then, as the lag components move away and move towards the third (Q75) and fourth (Q95) quartiles, the correlation between the study indicators and Iran's ecological footprint increases. Discussion and conclusion: In Iran, due to the abundance of energy and natural resources, the price of energy is low, which has caused excessive and incorrect use of energy. Granting banking facilities with easy conditions, tax exemptions and such for producers of gas and electric appliances with high energy efficiency and imposing heavy taxes on the other hand, lack of financial support and lack of licensing for producers of energy-intensive appliances with low energy labels, granting customs discounts for Importing gas appliances with high efficiency and not allowing entry or high customs duties for importing gas appliances with low efficiency can be useful in reducing energy consumption and ecological footprint.

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