Iranian Energy Economics

The Role of Energy Consumption Threshold in the Impact of Globalization and Financial Development on Ecological Footprint

Articles in Press

Document Type : Research Paper

Authors

javaher latifi 1
Ali Sayehmiri 2
asma shirkhani 3

1 Master's Degree in Economics, Khorramshahr University of Marine Science and Technology, Khorramshahr, Khuzestan, Iran

2 Ilam University

3 PhD Candidate in Econometrics, University of Isfahan, Isfahan, Iran

https://doi.org/10.22054/jiee.2025.83283.2122
Abstract
The Ecological Footprint Index measures the human demand for natural resources, which leads to climate change, biodiversity loss, soil degradation, and environmental pollution. This study uses data from 1980 to 2021 and the Threshold Autoregressive (TAR) method to examine the effects of energy consumption, economic growth, globalization, and financial development on the ecological footprint in Iran. The results reveal that the impact of variables on the ecological footprint depends on the initial energy consumption threshold (3.6 exajoules). In both lower and higher regimes of this threshold, energy consumption and globalization positively and significantly contribute to increasing the ecological footprint, with these effects being significantly amplified in the higher regime. Additionally, economic growth significantly impacts the ecological footprint only in the higher regime, indicating the adverse effects of advanced economic development on the environment. Financial development, on the other hand, negatively and significantly affects the ecological footprint in both regimes, demonstrating its potential to reduce environmental pressures. However, this mitigating effect is stronger in the lower regime. Therefore, it is essential to devise effective strategies to reduce fossil fuel consumption and improve energy efficiency during advanced stages of economic growth to alleviate environmental pressures.

Keywords

Ecological Footprint
Energy Consumption Threshold
Globalization
Financial Development
Subjects
Iranian Energy Economics

Articles in Press, Accepted Manuscript
Available Online from 01 June 2025

  • Receive Date 22 December 2024
  • Revise Date 28 May 2025
  • Accept Date 01 June 2025
  • First Publish Date 01 June 2025
  • Publish Date 01 June 2025

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