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Link between Technically Derived Energy Efficiency and Ecological Footprint: Empirical Evidence from the ASEAN Region

Author

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  • Dilawar Khan

    (Department of Economics, Kohat University of Science and Technology, Kohat 26000, Pakistan)

  • Muhammad Nouman

    (Department of Economics, Kohat University of Science and Technology, Kohat 26000, Pakistan)

  • József Popp

    (Department of Management, Faculty of Applied Sciences, Hungarian University of Agriculture and Life Sciences, 2100 Gödöllő, Hungary
    College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa)

  • Muhammad Asif Khan

    (Department of Commerce, Faculty of Management Sciences, University of Kotli, Kotli 11100, Pakistan)

  • Faheem Ur Rehman

    (Laboratory of International and Regional Economics, Graduate School of Economics and Management, Ural Federal University, Prospekt Lenina, 51, Yekaterinburg, Sverdlovsk Oblast 620075, Russia
    Department of Economics, The University of Haripur, BIC, Haripur 22620, Pakistan)

  • Judit Oláh

    (College of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa
    Faculty of Economics and Business, University of Debrecen, 4032 Debrecen, Hungary)

Abstract

The sustainable environment has been a desired situation around the world for the last few decades. Environmental contaminations can be a consequence of various economic activities. Different socio-economic factors influence the environment positively or negatively. Many previous studies have resulted in the efficient allocation of inputs as an environment-friendly component. This paper investigates the effects of energy efficiency on ecological footprint in the ASEAN region using balanced panel data from 2001 to 2019. First, this paper technically derives the energy efficiency, using the stochastic frontier analysis (SFA) of the translog production type of single output and multiple inputs. Findings of the SFA show that the Philippines and Singapore have the highest energy efficiency (94%) and Laos has the lowest energy efficiency (85%) in the ASEAN region. The estimated average efficiency score of the ASEAN region was around 90%, ranging from 85% to 96%, indicating that there is still 10% room for improvement in energy efficiency. Second, this study employed the panel autoregressive distributed lag (ARDL) model to explore the short run and long run impact of technically derived energy efficiency on ecological footprint in the ASEAN region. Results of the panel ARDL model show that energy efficiency is a reducing factor of ecological footprint in the long run. Moreover, energy efficiency plays a significant role to control the environmental contaminations. In addition, results of this study also explored that urbanization is an increasing factor of ecological footprint, and investment in agriculture is also beneficial for the environment. Moreover, to obtain the directional nature of the associations between the ecological footprint and its independent variables, this paper has employed the paired-panel Granger causality test. The results of the paired wise panel Granger causality test also confirm that the energy efficiency, urbanization, and investment in agriculture cause ecological footprint. Finally, this study recommends that efficient utilization of energy resources as well as investment in agriculture are necessary for sustainable environment.

Suggested Citation

  • Dilawar Khan & Muhammad Nouman & József Popp & Muhammad Asif Khan & Faheem Ur Rehman & Judit Oláh, 2021. "Link between Technically Derived Energy Efficiency and Ecological Footprint: Empirical Evidence from the ASEAN Region," Energies, MDPI, vol. 14(13), pages 1-16, June.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:13:p:3923-:d:585751
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