Estimating the environmental Kuznets curve for ecological footprint at the global level: A spatial econometric approach

The national ecological footprint of both consumption and production are significantly spatially autocorrelated at global level. This violates the assumption of independently distributed errors of most conventional estimation techniques. Using a spatial econometric approach, this paper re-examine the relationship between economic growth and environmental impact for indicator of ecological footprint. The results do not show evidence of inverted U-shape Environmental Kuznets Curve. The domestic ecological footprint of consumption (or production) was obviously influenced by the ecological footprint of consumption (or production), income and biocapacity in neighborhood countries. We also found that the consumption footprint is more sensitive to domestic income, while production footprint is more sensitive to domestic biocapacity, which is often unnoticed in EKC hypothesis analyses that focus exclusively on the consumption-based or production-based indictors.