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Environmental effects of entrepreneurship indices on ecological footprint of croplands and grazing lands in the economy

Khezri, Mohsen and Muhamad, Goran M. (2023) Environmental effects of entrepreneurship indices on ecological footprint of croplands and grazing lands in the economy. Journal of Cleaner Production, 414. ISSN 0959-6526

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Identification Number: 10.1016/j.jclepro.2023.137550

Abstract

Entrepreneurial activities are considered a commitment to economic growth with the motivation of deriving ecological sustainability. The main objective of this paper is to capture the environmental effects of entrepreneurship development on the ecological footprint of croplands and grazing lands in 14 developing, emerging, and developed countries of different sizes during 2002–2018. Empirical analyses are anchored on a set of estimation procedures; 45 different models were estimated to assess the independent effects of the entrepreneurship indices. Then, the panel data estimator of Fully Modified Ordinary Least Squares (FMOLS) is applied. It was found that (1) a 1% increase in energy intensity has a positive, significant effect on the ecological footprint of the agriculture sector. This arises from a decreased efficiency in the production sector. (2) A 1% increase in governmental support and policies, governmental programs, and internal market dynamics had a positive, significant effect on croplands. Moreover, the commercial and professional infrastructure and the physical and services infrastructure also had positive, significant effects on grazing lands. Meanwhile, such positive effects are not stable in all entrepreneurship indicators, and an increase in the physical and services infrastructure and internal market dynamics had significant, negative effects on croplands and grazing lands, respectively. Therefore, improvement of most of the entrepreneurship indicators can facilitate alleviation of environmental degradation through improvement of technological conditions. However, entrepreneurial indicators contribute to an increase in the negative environmental consequences of increased energy intensity. (3) Finally, an increase in most of the entrepreneurship indicators significantly steepens the Kuznets curve. Hence, it can be concluded that an increase in entrepreneurship indicators reduces the effects of economic growth on the ecological footprint in low-income countries and increase it in high-income countries.

Item Type: Article
Additional Information: © 2023 Elsevier Ltd
Divisions: Geography & Environment
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
G Geography. Anthropology. Recreation > G Geography (General)
Date Deposited: 11 Dec 2023 10:45
Last Modified: 15 Apr 2024 17:30
URI: http://eprints.lse.ac.uk/id/eprint/121014

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