The impact of Globalisation on Environmental Degradation: Evidence from Panel Data Analysis using the STIRPAT model

Authors

  • Brahim Zirari University of Medea (Algeria)
  • Essia Ries Ahmed

Keywords:

globalization, environmental degradation, panel data, STIRPAT model, European countries

Abstract

This paper examines the impact of globalisation on
accounting of environmental degradation in a sample of
European countries from 1990 to 2023. This study
evaluates environmental degradation using both Carbon
Dioxide (CO2) emissions and Total Greenhouse Gas
emissions (GHG), while data for globalisation was
collected from the KOF Swiss Economic Institute. In the
context of the econometrics model (STIRPAT model), The
study uses energy consumption and other variables as
control variables following previous studies in this
context. The empirical findings of Pooled Mean Group
panel model indicate that energy use have a positive
impact on environmental degradation. For globalization,
the results indicate that an increase in political
globalization mitigates environmental degradation,
whereas both economic and cultural globalization exhibit
fluctuating effects.

References

Abi, K. (2018). A Review of The Climate Change Funding under the United Nations

Framework Convention on Climate Change (UNFCCC)-With reference to the

case of Algeria. المتقدمة االقتصادية البحوث مجلة ,3(1), 320-338.

Assouni, D., & Berrag, A. (2026). Strengthening the Value System in Contemporary

Organizations in Light of Establishing the Foundations of Sustainable

Development: An Analytical Approach to Objectives and Means of

Implementation. المستدامة والتنمية االقتصاد مجلة ,9(1), 351-368.

Dorbane, N., & Hachemi, N. (2025). Globalization and the Environment: A Critical

مجلة العلوم االقتصادية والتسيير والعلوم .Lens Algerian the Through Analysis

التجارية ,18(1), 416-433.

Hussain, H. I., Haseeb, M., Tvaronavičienė, M., Mihardjo, L. W., & Jermsittiparsert, K.

(2020). The causal connection of natural resources and globalization with

energy consumption in top Asian countries: Evidence from a nonparametric

causality-in-quantile approach. Energies, 13(9), 2273.

https://doi.org/10.3390/en13092273

Idroes, G. M., Rahman, H., Uddin, I., Hardi, I., & Falcone, P. M. (2024). Towards

sustainable environment in North African countries: The role of military

expenditure, renewable energy, tourism, manufacture, and globalization on

environmental degradation. Journal of Environmental Management, 368,

https://doi.org/10.1016/j.jenvman.2024.122077

Jiang, J., Ye, B., & Liu, J. (2019). Research on the peak of CO2 emissions in the

developing world: Current progress and future prospect. Applied Energy, 235,

–203. https://doi.org/10.1016/j.apenergy.2018.10.089

Löschel, A., Rexhäuser, S., & Schymura, M. (2013). Trade and the environment: An

application of the WIOD database. Chinese Journal of Population Resources

and Environment, 11(1), 51-61.

https://doi.org/10.1080/10042857.2013.777213

Paramati, S. R., Apergis, N., & Ummalla, M. (2017). Financing clean energy projects

through domestic and foreign capital: The role of political cooperation among

the EU, the G20 and OECD countries. Energy economics, 61, 62-71.

https://doi.org/10.1016/j.eneco.2016.11.001

Pattak, D. C., Tahrim, F., Salehi, M., Voumik, L. C., Akter, S., Ridwan, M., ... & Zimon,

G. (2023). The driving factors of Italy’s CO2 emissions based on the STIRPAT

model: ARDL, FMOLS, DOLS, and CCR approaches. Energies, 16(15), 5845.

https://doi.org/10.3390/en16155845

Rafindadi, A. A., & Usman, O. (2019). Globalization, energy use, and environmental

degradation in South Africa: startling empirical evidence from the Makicointegration test. Journal of environmental management, 244, 265-275.

https://doi.org/10.1016/j.jenvman.2019.05.048

Rasool, Y., Jianguo, D., & Ali, K. (2024). Exploring the linkage between globalization and

environmental degradation: a disaggregate analysis of Indonesia. Environment,

Development and Sustainability, 26(7), 16887-16915.

Sethi, P., Chakrabarti, D., & Bhattacharjee, S. (2020). Globalization, financial development

and economic growth: Perils on the environmental sustainability of an

emerging economy. Journal of Policy Modeling, 42(3), 520-535.

https://doi.org/10.1016/j.jpolmod.2020.01.007

Shahbaz, M., Dube, S., Ozturk, I., & Jalil, A. (2015). Testing the environmental Kuznets

curve hypothesis in Portugal. International Journal of Energy Economics and

Policy, 5(2), 475-481.

Shahbaz, M., Khan, S., Ali, A., & Bhattacharya, M. (2017). The impact of

globalization on CO2 emissions in China. The Singapore Economic Review,

(04), 929-957. https://doi.org/10.1142/S0217590817400331

Shahbaz, M., Shahzad, S. J. H., & Mahalik, M. K. (2018). Is globalization detrimental to

CO 2 emissions in Japan? New threshold analysis. Environmental Modeling &

Assessment, 23, 557-568. https://doi.org/10.1007/s10666-017-9584-0

Shahbaz, M., Shahzad, S. J. H., Alam, S., & Apergis, N. (2018). Globalisation,

economic growth and energy consumption in the BRICS region: The

importance of asymmetries. The Journal of International Trade & Economic

Development, 27(8), 985-1009.

https://doi.org/10.1080/09638199.2018.1481991

Shu, X., Usman, M., Ahmad, P., & Irfan, M. (2024). Analysing the asymmetric FinTech

services under natural resources, and renewable energy in the future

environmental performance: New insights from STIRPAT model framework.

Resources Policy, 92, 104984. https://doi.org/10.1016/j.resourpol.2024.104984

Wang, J., & Azam, W. (2024). Natural resource scarcity, fossil fuel energy consumption,

and total greenhouse gas emissions in top emitting countries. Geoscience

Frontiers, 15(2), 101757. https://doi.org/10.1016/j.gsf.2023.101757

Xing, L., Khan, Y. A., Arshed, N., & Iqbal, M. (2023). Investigating the impact of

economic growth on environment degradation in developing economies

through STIRPAT model approach. Renewable and Sustainable Energy

Reviews, 182, 113365. https://doi.org/10.1016/j.rser.2023.113365

York, R., Rosa, E. A., & Dietz, T. (2003). STIRPAT, IPAT and ImPACT: Analytic tools

for unpacking the driving forces of environmental impacts. Ecological

Economics, 46(3), 351–365. https://doi.org/10.1016/S0921- 8009(03)00188-5

Published

2026-09-01