A Comparative Analysis on Ecological Footprint of Consumption and Import in Premature Deindustrialized Countries

This study aims to analyze the factors influencing the ecological footprint of consumption and import as indicators of environmental degradation in premature deindustrialized countries. Using advanced Method of Moments Quantile Regression (MMQR) analysis, we examined a panel of 27 countries from 1991 to 2021. The main findings indicate that income, income inequality, and industrialization are positively correlated with the ecological footprint stemming from consumption, but an increase in the share of renewable energy consumption exhibits a mitigation effect. The ecological footprint stemming from imports, on the other hand, is exacerbated by income, industrialization, de facto trade globalization, and democracy, whereas it is negatively affected by the higher share of renewable energy consumption. Importantly, MMQR analysis reveals that the effect of each independent variable is non-linear, with the magnitude of coefficients varying across different quantiles of the ecological footprint of both consumption and import. From a policy standpoint, effective mitigation of different aspects of environmental degradation requires prioritization of income redistribution, the promotion of green industrialization, and the enhancement of renewable energy adoption, as well as careful management of trade globalization and democratic governance in premature deindustrialized countries.