Geopolitical risk and ecological efficiency: A combination approach based on super-efficiency-DEA and extended-STIRPAT models.

ABSTRACT

Increased geopolitical risks are impacting the sustainable development of the ecological environment. To better understand the impact of geopolitical risk on ecological sustainability, this study develops a research framework for the impact of geopolitical risk on ecological efficiency. (i) Measuring ecological efficiency by data envelopment analysis. (ii) Examining the relationship between geopolitical risks and ecological efficiency using the extended STIRPAT. (iii) Heterogeneity analysis and mediation test were used to further explore the impact mechanism of geopolitical risks. The research results show that (i) There are obvious differences in the ecological efficiency of countries with different income levels. The ecological efficiency of countries with higher income levels is generally higher, while the ecological efficiency of countries with lower income levels is lower. (ii) Geopolitical risks reduce ecological efficiency, which is bad for ecosystem sustainability. (iii) The magnitude of the adverse impact of geopolitical risks on ecological efficiency is different among different income groups. The negative impact of geopolitical risk on eco-efficiency is worse in high-income countries than in low-income countries.