Analysing the ecological footprint in EU-5 countries under a scenario of carbon neutrality: Evidence from newly developed sharp and smooth structural breaks in unit root testing

ÇAĞLAR A. E., Balsalobre-Lorente D., AKIN C. S.

JOURNAL OF ENVIRONMENTAL MANAGEMENT, vol.295, 2021 (SCI-Expanded) identifier identifier identifier

  • Publication Type: Article / Article
  • Volume: 295
  • Publication Date: 2021
  • Doi Number: 10.1016/j.jenvman.2021.113155
  • Journal Name: JOURNAL OF ENVIRONMENTAL MANAGEMENT
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, International Bibliography of Social Sciences, PASCAL, Aerospace Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, CAB Abstracts, Communication Abstracts, EMBASE, Environment Index, Geobase, Greenfile, Index Islamicus, MEDLINE, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Keywords: Carbon neutrality, Ecological footprint, EU-5 countries, Stationary, Sharp and smooth breaks, ENVIRONMENTAL KUZNETS CURVE, OIL-PRICE SHOCK, ECONOMIC-GROWTH, TIME-SERIES, FINANCIAL DEVELOPMENT, POLICY SHOCKS, CO2 EMISSIONS, GREAT CRASH, STATIONARITY, CONVERGENCE
  • Akdeniz University Affiliated: Yes

Abstract

This paper examines the resistance to shocks (economic, political, outbreaks etc.) of the ecological footprint in EU-5 countries over the period 1961-2016. The aim of the study is to determine whether the ecological footprint tends to return to the average with advanced econometric analysis. Efforts to move towards carbon neutrality, which increased after the Paris Agreement, are important for the countries in our analysis. To achieve our aim, we primarily used traditional and one-break unit root tests, followed by the novel SOR unit root test, which considers both sharp and smooth breaks to achieve robust results. The econometric findings show that EF and its six components (i.e., carbon, cropland, grazing land, forest, built-up land and fishing grounds) all contain unit root except the built-up land footprint for Spain and the grazing land and forest footprint for the United Kingdom. Our study provides policymakers with important information for implementing policies to reduce environmental pollution and achieve the target of carbon neutrality.