Variation in GDP and its Link with Ecological Footprint and Air Pollution- A Across Country Analysis

Abstract

Abstract This study attempts to detect the relation of ecological footprint and air pollutants- CO2, N2O, SO2& CH4 with economic growth, urbanization, foreign direct investment inflow and energy consumption through Environmental Kuznets Curve (EKC) framework by employing fixed effect and random effect model. This is a comparative study involving panel of 56 selected countries from several income groups- high, middle, low covering the period 1990–2019. A theoretical approach has been undertaken to analyze the pollution intensity of population, based on decomposition analysis coherent with application of the notion of Kaya identity. The results confirmed the existence of N-shaped relationship for the natural resource degradation model in the high and middle income countries. CO2 pollutant exhibits N-shaped pattern of change with economic growth for both high and middle income countries. N2O model confirms the existence of N-shaped EKC for high and low income group and inverse U-shaped curve for middle income group of countries. Further the results of pollution model confirmed the N-shaped relationship of SO2 and CH4 emission with income growth in middle and low income economies. The results suggest that reconsideration of some economic and environmental policies are necessary to mitigate environmental degradation issues.