Exploring the granger causal relationship between GDP growth and the ecological footprint: Evidence from Bangladesh
Keywords:
Ecological footprint, Growth, SustainabilityAbstract
This study investigates the relationship between economic growth and environmental sustainability in Bangladesh, focusing on the Granger causal dynamics between GDP growth and the ecological footprint using Vector Error Correction Models (VECM). The findings reveal that while short-term changes in the ecological footprint are largely influenced by its own past values, GDP growth, industrial output, and energy consumption exhibit limited immediate effects. In the long term, a significant negative relationship between GDP growth and the ecological footprint suggests that sustainable practices and technological advancements can mitigate environmental degradation. The absence of Granger causality between GDP growth and the ecological footprint highlights the complexity of their interaction, potentially mediated by policy and global market dynamics. The study underscores the importance of strengthening environmental governance, adopting renewable energy, and fostering international cooperation to achieve sustainable economic growth, providing evidence-based insights for policymaking in a rapidly developing economy.
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