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Does Income Growth Relocate Ecological Footprint?

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  • Sevil Acar

    () (Istanbul Kemerburgaz University)

  • Ahmet Atil Asici

Abstract

The aim of this paper is to investigate whether countries tend to relocate their ecological footprint as they grow richer. The analysis is carried out for a cross-section of 105 countries by employing the production and import components of the Ecological Footprint data of the Global Footprint Network belonging to the year 2006. With few exceptions, the existing Environmental Kuznets Curve (EKC) literature concentrates only on the income-environmental degradation nexus in the home country and neglects the negative consequences of home consumption spilled out. Controlling for effects of openness to trade, biological capacity, population density, industry share and energy per capita as well as stringency of environmental regulation and environmental regulation enforcement, we detect an EKC-type relationship between per capita income and footprint of domestic production as well as that of import, although the income turning points for import footprint are found to be out of the income range of the sample. Moreover, we find that domestic environmental regulations do not influence country decisions to import environmentally harmful products from abroad; but they do affect domestic production characteristics. Hence, our findings indicate the importance of environmental regulations and provide support for the “Pollution Haven” and “Race-to-the-Bottom” hypotheses.

Suggested Citation

  • Sevil Acar & Ahmet Atil Asici, 2015. "Does Income Growth Relocate Ecological Footprint?," Working Papers 938, Economic Research Forum, revised Sep 2015.
  • Handle: RePEc:erg:wpaper:938
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    References listed on IDEAS

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    Cited by:

    1. Thi Anh Dam & Markus Pasche & Niclas Werlich, 2017. "Trade Patterns and the Ecological Footprint - a theory-based Empirical Approach," Jena Economic Research Papers 2017-005, Friedrich-Schiller-University Jena.
    2. Simona Ioana Ghita & Andreea Simona Saseanu & Rodica-Manuela Gogonea & Catalin-Emilian Huidumac-Petrescu, 2018. "Perspectives of Ecological Footprint in European Context under the Impact of Information Society and Sustainable Development," Sustainability, MDPI, Open Access Journal, vol. 10(9), pages 1-25, September.
    3. Maralgua Och, 2017. "Empirical Investigation of the Environmental Kuznets Curve Hypothesis for Nitrous Oxide Emissions for Mongolia," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 117-128.
    4. Karakaya, Etem & Yılmaz, Burcu & Alataş, Sedat, 2018. "How Production Based and Consumption Based Emissions Accounting Systems Change Climate Policy Analysis: The Case of CO2 Convergence," MPRA Paper 88781, University Library of Munich, Germany.
    5. Rasli, Amran Md. & Qureshi, Muhammad Imran & Isah-Chikaji, Aliyu & Zaman, Khalid & Ahmad, Mehboob, 2018. "New toxics, race to the bottom and revised environmental Kuznets curve: The case of local and global pollutants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 3120-3130.
    6. Lin Zhen & Bingzhen Du, 2017. "Ecological Footprint Analysis Based on Changing Food Consumption in a Poorly Developed Area of China," Sustainability, MDPI, Open Access Journal, vol. 9(8), pages 1-18, August.
    7. Chen Wang & Guoqing Shi & Yongping Wei & Andrew William Western & Hang Zheng & Yan Zhao, 2017. "Balancing Rural Household Livelihood and Regional Ecological Footprint in Water Source Areas of the South-to-North Water Diversion Project," Sustainability, MDPI, Open Access Journal, vol. 9(8), pages 1-20, August.

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