Short-Run Links in Ecological Footprint: A Dynamic Factor Analysis for the EU

Abstract

The Ecological Footprint (EFP) is a useful indicator for assessing the progress of environmental performance and offers a solid basis for sustainability studies. In this paper, we contribute to the broadening of its possibilities of investigation by measuring the cross-country links in the EFP in global hectares per capita. The modeling framework is based on the dynamic factor analysis to estimate, in the parametric form, an index that provides information about the short-run dynamics of the EFP in the EU. Following this approach, we identify different patterns in the EFP behavior of the European countries during the period of 1962–2017. The results show stronger links across the EFP of the main European countries: France, Austria, Belgium, Germany, Denmark and the U.K. The proposed analysis gives a better understanding of the links behind environmental degradation in the EU and is applicable for the implementation and design of environmental policies.

Keywords

• ecological footprint
• dynamic factor model
• cross-country links