Examining the asymmetric effects of fossil fuel consumption, foreign direct investment, and globalization on ecological footprint in Mexico

Eweade B. S., KARLILAR PATA S., PATA U. K., Adeshola I., Olaifa J. O.

Sustainable Development, cilt.32, sa.4, ss.2899-2909, 2024 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 32 Sayı: 4
  • Basım Tarihi: 2024
  • Doi Numarası: 10.1002/sd.2825
  • Dergi Adı: Sustainable Development
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, International Bibliography of Social Sciences, PASCAL, ABI/INFORM, Agricultural & Environmental Science Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), Business Source Elite, Business Source Premier, CAB Abstracts, Environment Index, Geobase, Greenfile, Index Islamicus, PAIS International, Political Science Complete, Pollution Abstracts, Sociological abstracts, Veterinary Science Database, Worldwide Political Science Abstracts, Civil Engineering Abstracts
  • Sayfa Sayıları: ss.2899-2909
  • Anahtar Kelimeler: ecological footprint, foreign direct investment, fossil fuels, globalization, Mexico
  • Hatay Mustafa Kemal Üniversitesi Adresli: Evet

Özet

This paper investigates the asymmetric effects of fossil fuels, foreign direct investment (FDI), and globalization on the ecological footprint (EFP) in Mexico from 1975 to 2020. To this end, the Autoregressive Distributed Lag (ARDL), Nonlinear Autoregressive Distributed Lag (NARDL), and the wavelet coherence approach are conducted. Based on the outcomes of the ARDL method, economic growth and fossil fuel consumption lead to ecological degradation, while foreign direct investment improves environmental conditions. Globalization has no impact on the environment. The NARDL approach illustrates that a positive shock to fossil fuels, FDI, and globalization degrades the environment. The wavelet coherence results emphasize the adverse environmental influence of economic growth and fossil fuels. These results imply that the Mexican government should conduct its economic expansion considering the principle of sustainable development. In this context, policymakers should propagate carbon taxes and similar instruments to promote clean energy sources that can replace fossil fuels and are compatible with sustainable development policies.