Journal of Applied Economics Studies in Iran

Journal of Applied Economics Studies in Iran

The Regional spillover effects of natural resource extraction on ecological footprint in the Middle East

Document Type : Research Article

Authors
1 Assistant Professor, Department of Economics, Faculty of Economics and Social Sciences, Bou Alisina University, Hamadan, Iran
2 Assistant Professor, Department of Economics, Faculty of Economics and Social Sciences, Bu-Ali Sina University, Hamedan, Iran
3 department of economics, faculty of economics and social science, Bu-Ali Sina University, Hamedan, Iran.
10.22084/aes.2026.31991.3862
Abstract
The extraction of oil and gas resources in the Middle East region is a primary source of income and economic growth. However, these resources have not only failed to drive these countries towards development but have also put pressure on the environment. This research examines the impact of gas extraction on the ecological footprint in the Middle East from 2000 to 2021. The main contribution of this research is applying the spatial panel data method to analyze the environmental spillover effects of gas extraction in the region. The estimated spatial Rho coefficient indicates that the ecological footprint determinants in a country have spillover effects on neighboring countries' environmental quality. This result highlights the necessity of enforcing intra-regional environmental regulations in the Middle East. Moreover, the estimation results show that local natural gas extraction significantly increases environmental degradations in the home country. Therefore, implementing new technologies for energy extraction to reduce the emissions intensity of oil and gas operations, enforcing stricter environmental protection regulations, and adopting policies to reduce the economy's dependence on natural resources can decrease their ever-increasing reliance on natural resources, ultimately improving environmental quality. Additionally, the hypothesis of EKC is rejected in the Middle East region, denoting that environmental preservation policies are not accompanied by an economic acceleration process in the Middle East. They still prioritize economic growth issues over environmental concerns. Additionally, the hypothesis of EKC is rejected in the Middle East region, denoting that environmental preservation policies are not accompanied by an economic acceleration process in the Middle East. They still prioritize economic growth issues over environmental concerns.
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