Dynamic Effect of Renewable and Non-Renewable Energy Consumption on Ecological Footprint in Selected Developing Countries (Generalized Method of Moments Approach)

This paper aims to analyze the dynamic effect of non-renewable energy consumption (including fossil energy) and renewable energy (including clean energy) on the environment of selected developing countries for the period 2000-2017. The ecological footprint index was used to analyze the environmental effects. The variables of trade openness, economic growth and fertility rate were also considered as other variables affecting the ecological footprint. To analyze the dynamic effects of energy consumption on the ecological footprint, the Generalized Dynamic Method of Moments (GMM) panel method has been applied. The results show that the consumption of non-renewable and renewable energy had a positive and negative effect on the ecological footprint of selected developing countries, respectively. Accordingly, the consumption of non-renewable energy has led to further degradation of the environment, but the consumption of renewable energy has resulted in the improvement of the environment. On the other hand, the degree of trade openness had a negative effect, and economic growth and fertility rate had a positive effect on the ecological footprint.