Persistence of policy shocks to Ecological Footprint of the USA

- Ecological Footprint is discussed.
- The stochastic behaviors of Ecological Footprint and its components are investigated.
- Fourier unit root tests that are more powerful under the unknown number of breaks are conducted.
- Persistence of policy shocks to Ecological Footprint are determined.

This is the first study that aims to investigate policy shocks to Ecological Footprint of the USA. More precisely, we analyze the stochastic behaviors of the Ecological Footprint and its components (carbon Footprint, cropland, grazing land, forest products, built-up-land, and fishing grounds) by using Fourier unit root tests that are more powerful under an unknown number of breaks. The stationarity of a time series gives information about its future behavior based on past behavior. More specifically, stationarity properties give information on whether shocks have transitory or permanent effects on a variable; therefore, the stationarity of a time series has important implications to the formation of appropriate policies by decision makers. Stochastic properties of the Ecological Footprint are important considerations to the implementation of global and local policies targeting global warming, climate change and environmental degradation. Empirical results show that the Ecological Footprint is non-stationary which suggests that policies affecting the Ecological Footprint will have long-term and permanent effects. Findings and policy implications are further discussed.