Assessment of spillover effects of integration on the environmental quality in the EAEU

The risk of the environmental degradation is one of the unexpected consequences of the interregional integration. The lifting of barriers to the flow of goods, services, and economic resources in the integration area causes the intensification of economic growth. In accordance with the model of Kuznets' ecological curve, it causes the environmental degradation. The purpose of the study is to identify the long-term impact of spillover effects of integration on the environment of the 5 EAEU countries The construction of the Durbin Spatial Model (SDM) allowed us to establish the negative impact of the economic growth on the ecological footprint in the EAEU countries and their living standards. However, the spillover effect for the neighbouring countries is practically insignificant. On the contrary, it has a positive impact on the ecological footprint in the EAEU countries. Indeed, the spillover effect for neighbouring countries is significant. Moreover, the research provides the recommendations for reducing the environmental damage in terms of a reasonable consumerism.