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Testing the ecological footprint of economic growth in developing countries. The case of Vietnam

Author

Listed:
  • Minh‐quang Nguyen

    (LEAD - Laboratoire d'Économie Appliquée au Développement - UTLN - Université de Toulon, Thuongmai University - Partenaires INRAE)

  • Michel Dimou

    (LEAD - Laboratoire d'Économie Appliquée au Développement - UTLN - Université de Toulon)

  • Thi Thu Huong Vu

    (Thuongmai University - Partenaires INRAE)

  • Alexandra Schaffar

    (LEAD - Laboratoire d'Économie Appliquée au Développement - UTLN - Université de Toulon)

  • Cong Phan The

    (Thuongmai University - Partenaires INRAE)

  • Ngoc Quynh Nguyen

    (Thuongmai University - Partenaires INRAE)

Abstract

This study focuses on the relationship between economic growth and environmental degradation, by testing the Environmental Kuznets Curve hypothesis in Vietnam, a main export‐oriented country that features a long period of economic growth. The main originality of this work is that, unlike previous studies, it uses ecological footprint as the main indicator for environmental degradation. This allows to reconsider the results from previous studies that only focus on CO 2 emissions performances. The cointegration between the analysed variables is investigated using the autoregressive distributed lag (ARDL) approach. To determine the parameters of the Environmental Kuznets Curve in the sample, this work additionally analyses long‐ and short‐run estimations. The paper shows that the EKC hypothesis holds in the long term for Vietnam when using ecological footprint. Nevertheless, it also shows that not only growth but also primary energy consumption contributes to increased environmental destruction. An active ecological policy and the decrease of fossil energy use seem necessary to allow Vietnam to keep a high level of economic growth and reduce environmental degradation.

Suggested Citation

  • Minh‐quang Nguyen & Michel Dimou & Thi Thu Huong Vu & Alexandra Schaffar & Cong Phan The & Ngoc Quynh Nguyen, 2024. "Testing the ecological footprint of economic growth in developing countries. The case of Vietnam," Post-Print hal-04985906, HAL.
    • Handle: RePEc:hal:journl:hal-04985906
    DOI: 10.1002/jid.3918
    Note: View the original document on HAL open archive server: https://hal.science/hal-04985906v1
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    References listed on IDEAS

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    1. Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "CO2 emissions, nuclear energy, renewable energy and economic growth in the US," Energy Policy, Elsevier, vol. 38(6), pages 2911-2915, June.
    2. Zambrano-Monserrate, Manuel A. & Silva-Zambrano, Carlos A. & Davalos-Penafiel, Jose L. & Zambrano-Monserrate, Andrea & Ruano, Maria Alejandra, 2018. "Testing environmental Kuznets curve hypothesis in Peru: The role of renewable electricity, petroleum and dry natural gas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 4170-4178.
    3. Apergis, Nicholas & Payne, James E. & Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth," Ecological Economics, Elsevier, vol. 69(11), pages 2255-2260, September.
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