Globalization, Financial Development, and Environmental Degradation: Evidence from West African Countries Using Ecological Footprint

This study examines the effects of globalization and financial development on environmental degradation, incorporating renewable energy consumption and per capita income for selected West African countries over the period 1990-2018. Researchers in this area mostly use carbon dioxide emissions as an indicator for environmental degradation. In contrast, the current study uses ecological footprint––a broader indicator of environmental sustainability. Owing to the presence of cross-sectional dependence and heterogeneity in the panel data, the study deploys Common Correlated Effects Mean Group (CCEMG) and Augmented Mean Group (AMG) estimators. The findings demonstrate that globalization and financial development are inimical to the environment by increasing ecological footprint. Furthermore, economic growth contributes to environmental degradation. The findings of this study have very salient policy implications for the selected African countries.