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

Subject Areas : Environmental managment

Maryam Mohammadi Nia ¹ , Gholamreza Abbasi ² , Bijan Basri ³ , Reza Rahimi ⁴

1 - PhD student of Economic Development, Department of Economic Sciences, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
2 - Assistant Professor, Department of Economic Sciences, Central Tehran Branch, Islamic Azad University, Tehran, Iran. *(Corresponding author)
3 - Assistant Professor, Department of Economic Sciences, Central Tehran Branch, Islamic Azad University, Tehran, Iran.
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.

References:

1. Ahmad, N., Du, L., Lu, J., Wang, J., Li, H.-Z., & Hashmi, M. Z. (2019). Modelling the CO2 emissions and economic growth in Croatia: Is there any environmental Kuznets, curve? Energy, 123, 16172.


2. Hill, C.W.L., 2007. International business : competing in the global marketplace, 7th ed.McGraw-Hill Irwin, New York.


3. Mills, M. (2009). Globalization and inequality. European Sociological Review, 25(1), 1-8.

1. Gygli, S., Haelg, F., Potrafke, N., Sturm, J.-E. (2019). The KOF Globalisation Index – revisited. Rev. Int. Organ. 14 (3), 543–574.


2. Saud, S., Chen, S., Haseeb, A., Sumayya. (2020). the role of financial development and globalization in the environment: accounting ecological footprint indicators for selected one-belt-one-road initiative countries. J. Cleaner Prod. 250, 119518. https://doi.org/10.1016/j.jclepro.2019.119518.

6. Wen, J., Okolo, C. V., Ugwuoke, I. C., & Kolani, K. (2022). Research on influencing factors of renewable energy, energy efficiency, on technological innovation. Does trade, investment and human capital development matter?. Energy Policy, 160, 112718.

1. Baloch, M.A., Zhang, J., Iqbal, K., Iqbal, Z. (2019). The effect of financial development on ecological footprint in BRI countries: evidence from panel data estimation. Environ. Sci. Pollut. Res. 26 (6), 6199–6208.

8. Usman, M., Makhdum, M. S. A., & Kousar, R. (2021). Does financial inclusion, renewable and non-renewable energy utilization accelerate ecological footprints and economic growth? Fresh evidence from 15 highest emitting countries. Sustainable cities and society, 65, 102590.‏

1. Doytch, N. (2020). The impact of foreign direct investment on the ecological footprints of nations. Environmental and Sustainability Indicators, 8, 100085. ‏


2. Ahmed, Z., Wang, Z., Mahmood, F., Hafeez, M., Ali, N. (2019). Does globalization increase the ecological footprint? Empirical evidence from Malaysia. Environ. Sci. Pollut. Res. 26 (18), 18565–18582.

11. Danish, Recep Ulucak, Salah Ud-Din Khan.(2019). Determinants of the ecological footprint: Role of renewable energy,natural resources, and urbanization, Journal Pre-proof, Sustainable Cities and Society, Published by Elsevier.


12. Zhang, Y., & Wu, Z. (2021). Intelligence and green total factor productivity based on China’s province-level manufacturing data. Sustainability, 13(9), 4989.‏

1. Ibrahim, R. L., Al-mulali, U., Ozturk, I., Bello, A. K., & Raimi, L. (2022). On the criticality of renewable energy to sustainable development: Do green financial development, technological innovation, and economic complexity matter for China? Renewable Energy, 199, 262-277‏.


2. Danish, Syed Tauseef Hassan, Muhammad Awais Baloch, Nasir Mehmood, JianWu Zhang. (2019). Linking economic growth and ecological footprint through human capital and biocapacity, Journal Pre-proof, Sustainable Cities and Society, Published by Elsevier.

15. Asıcı,‌‌Ahmet Atıl, Sevil,‌‌ Acar‌‌.(2018). How does environmental regulation affect production location of noncarbon ecological footprint, Journal of Cleaner Production,178, Contents lists available at ScienceDirect,pages 927-936.

1. Meena, Ashvin Kumar. (2019). What is Ecological Footprint and Why is it Important? Agronomy, VOL. NO. XVIII, ISSUE NO. 01. Pegess 25-26.

17. Topolewski, Ł. (2021). Relationship between energy consumption and economic growth in European countries: Evidence from dynamic panel data analysis. Energies, 14(12), 3565.‏


18. Zhang, S., Luo, S., & Afshan, S. (2022). Role of climate technologies, financial development, and renewable energy in the facilitation of social, economic, and environmental goals. Renewable Energy, 199, 169-178.‏

1. Ahmed, Z; Zhang, B; Cary; Z. (2021). Linking economic globalization, economic growth, financial development, and ecological footprint: Evidence from symmetric and asymmetric ARDL, Ecological Indicators.


2. Hu, J., Wang, Z., Huang, Q., & Zhang, X. (2019). Environmental regulation intensity, foreign direct investment, and green technology spillover—An empirical study. Sustainability, 11(10), 2718.

21. Uddin, G.A., Salahuddin, M., Alam, K., Gow, J.(2017). Ecological footprint and real income:panel data evidence from the 27 highest emitting countries. Ecol. Indicat. 77, 166–175.


22. Parsashrif, Haditha, Amirnejad, Hamid, and Taslimi, Mehsa. (1400). Investigating factors affecting the ecological footprint of selected Asian and European countries. Agricultural Economics Research, 13(2), 155-172.

1. Deliri, Hassan. (2019). The relationship between ecological footprint and economic growth in D8 countries: testing Kuznets' environmental hypothesis using the PSTR model. Economic Modeling Research, 10(39), 81-111.

24. Tarzkar, Mohammad Hassan, Kargar Deh Bedi, Navid, Spongari Kanari, Reza, and Ghorbin, Efat. (2019). The effect of economic growth on environmental degradation in the Middle East region: the application of ecological footprint. Natural Environment (Natural Resources of Iran), 73(1), 77-90.