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RESEARCH ARTICLE
The intermittent effects of renewable energy on ecological footprint:
evidence from developing countries
Malayaranjan Sahoo
1
&Narayan Sethi
1
Received: 4 January 2021 /Accepted: 24 May 2021
#The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature 2021
Abstract
This paper examines the relationship between renewable, non-renewable energy, natural resources, human capital, and global-
ization on ecological footprint from 1990 to 2016 for developing countries. We apply Westerlund co-integration technique to
check the long-run relationship among the variables. The long-run elasticity of the model is analyzed through MG, AMG, and
DCCE. For the robustness check of the long-run relationship among the variables, we use FMOLS and DOLS approach. The
direction of causal relationship is determined through Dumitrescu and Hurlin causality test. Our findings revealed that economic
growth, non-renewable energy, natural resource, and urbanization are inducing the ecological footprint of developing countries
and reducing the environment’s quality. To cope up with this situation, developing countries are bound to use more fossil fuel
energy. The use of non-renewable energy consumption leads to increase the extraction of natural resources like coal and oil.
However, renewable energy reduces the ecological footprint or improves environmental quality. Similarly, human capital and
globalization have negative effects on ecological footprint. The results of causality test reveal that there are feedback effects
between ecological footprint with economic growth, globalization, and natural resources. This study suggests that these devel-
oping countries should focus more on the investment in the renewable energy sector, improve quality education, and make
stringent environmental policy for protecting the nations from ecological issues.
Keywords Renewable energy .Natural resources .Globalization .Human capital .Ecological footprint
Introduction
The country follows the path of development process relying
on its resource base, including natural and human capital. In
earlier phases of the economic development, it was easier to
use and the pool of natural resources for a country. The rapid
extraction of natural resources boosts the development pro-
cess of developing countries, while the environmental quality
of these countries impaired by pattern and use of natural re-
sources (Bekun et al. 2019). Continuous use of natural re-
sources steadily increases the degree of environmental
degradation. This leads to explore more renewable energy
sources. Similarly, urbanization refers to the process of expan-
sion in the proportion of the population residing in urban
areas. Many cities are experiencing high growth of urbaniza-
tion (United Nations 2017). The sudden rise of urbanization
leads to environmental degradation, which is a global problem
for the environment but is more detrimental to developing
countries (Azam and Khan 2016). Similarly, globalization
has also some positive effects like reducing poverty, closing
the gap of income inequality in developing countries, but still
the environmental consequences are debated (Salahuddin
et al. 2019a,2019b;Destek2020;Khalidetal.2020).
Along with the path of development, ecological quality is
rapidly depreciating due to “deterioration of ambient air qual-
ity, reduction of forest cover, soil erosion, continuous varia-
tion in the pH value of water, and many other associated
reasons.”With income growth decelerating the rate of depre-
ciation, environmental sustainability continues to increase
above those income thresholds. The theoretical relation of
income-pollution represents an inverse U-shaped, known as
the theory of the environmental Kuznets curve (EKC) by
Responsible editor: Eyup Dogan
*Malayaranjan Sahoo
sahoomalayaranjan4@gmail.com
Narayan Sethi
nsethinarayan@gmail.com
1
Department of Humanities and Social Sciences, National Institute of
Technology Rourkela, Rourkela, Odisha 769008, India
Environmental Science and Pollution Research
https://doi.org/10.1007/s11356-021-14600-3
Kuznets (1955) that assumed an inverted U-shaped linkage
among environment and economic growth. In a seminal paper
by Grossman and Krueger (1995), studying the impact of
North American Free Trade Agreement (NAFTA) on the en-
vironment, it was found that an inverted U-shaped curve be-
tween growth and environmental quality. Today, when
assessing the environmental effects of economic develop-
ment, the ecological metric has chosen specifically as contam-
inants. In this analysis, however, we have selected the envi-
ronmental sustainability indicator for the ecological footprint
(EF). The ecological footprint describes the Earth’scarrying
capacity and the earth as an intrinsic futurist feature; it is also a
measure of sustainability, as characterized by Rees (1992)and
Wackernagel et al. (1999). They state that a common ecolog-
ical region can provide the goods that the parties engaged in a
plan to develop the use and at the same time of taking up the
waste formed by those groups. Wackernagel and Monfreda
(2004) later disregarded this concept. The ecological footprint,
according to them a calculation of the biological potential
required to manage an economic system which means that
the natural capital of the bio-capacity should have an essential
pool and also the waste produced by the economic system
should be capable of absorbing.
However, in reaction to global climate change, environ-
mentalists have pre-occupied themselves with studies on en-
ergy consumption (renewable and non-renewable), trade and
urbanization, globalization, human capital, and their environ-
mental impacts (Shahbaz et al. 2017a,2017b; Usman and
Hammar 2020;Sehrawat2020; Yao et al. 2020; Khan 2020;
Bakhsh et al. 2017; Xu and Lin 2017). Economic activity
raises the energy demand and stimulates industrialization, en-
couraging trade in turn. Though some of the developingcoun-
tries are rich in natural resources, yet weak technical and eco-
nomic structures are catalyzing unsustainable energy usage
and increasing greenhouse gas emissions. Since 2007, signif-
icant and unforeseen reductions in the cost of producing re-
newable energy have occurred. In conjunction with policy
initiatives aimed at reducing greenhouse gas emissions, ener-
gy systems, particularly solar and wind, have produced a par-
adigm shift in energy systems (Arndt et al. 2019).
Developing countries are mainly concerned with high
growth rate rather than the detrimental environmental impli-
cations of such growth. Energy Information Administration
(EIA 2013) states that energy consumption of developing
countries projected at 65% of world energy by 2040. It has
regarded that developing countries are consuming high
amount of non-renewable energy consumption than renew-
able energy, because of poor investment in renewable energy
sector forcing them to use fossils fuels, which has high carbon
contents (Hu et al. 2018). Changing the economic structure of
the developing countries is one of the most important factors
of high-energy consumption. Many developing countries de-
pend on high-energy intensive sectors (Miketa and Mulder
2005). Hence, it leads to increase environmental pollution,
adding harm to human health and sustainable environment.
It is also projected that developing countries expected to ex-
perience the high population growth through by 2040 (Keho
2016). Due to population explosion in developing counties,
resource scarcity can happen easily, triggering environmental
problems like global climate change, erosion, and habitat de-
struction. It has also claimed that developing countries have
resource endowments, unexplored renewable energy, and
frangibleness climate. Among the developing countries,
China and India are the 1
st
and 3
rd
position in terms of world’s
CO
2
emitters. Similarly, Indonesia, Mexico, and Brazil are
10
th
,12
th
,and14
th
carbon emitter in the world. These coun-
tries are highest emitter of CO
2
emissions because of high use
of non-renewable energy consumption like coal and natural
gas (Awodumi and Adewuyi 2020). As per the Global
Footprint Network (Global Footprint Network, 2018), the
world average ecological footprint per person was 2.75 global
hectares, and bio-capacity of world average is 1.63 global
hectares. Therefore, there is an ecological deficit of 1.1 in
the world. A footprint smaller than the planet’sbio-capacity
is a critical requirement for humanity’s long-term survival. If a
country fails to absorb its own population footprint, the coun-
try is therefore called as an ecological debtor because it has an
ecological deficit. Almost all developing countries are facing
the ecological deficit like Bangladesh, Pakistan, India,
Afghanistan, Haiti, Nigeria, Cameroon, and Sri Lanka.
Hence, in this paper, we are considering that higher ecological
footprint leads to reduced environmental quality. According
to Global Footprint Network (GFN 2018), about 80% of the
world’s population lives in a country with a significant envi-
ronmental crisis. The increased use of non-renewable energy,
in tandem with negative trade and a rise in urbanization,
would end environmental sustainability. Hence, this motivates
us to attempt this study in the developing countries.
In this paper, we examine the relationship between renew-
able energy, non-renewable energy, globalization, and natural
resources on the ecological footprint in 36 developing coun-
tries. The contributions of the paper to previous studies are as
follows: (i) there are many researchers who have discussed the
environment-growth-energy nexus in a panel as well as indi-
vidual studies. This study is the first empirical analysis in the
case of developing countries taking as ecological footprint (a
positive indicator), human capital, natural resources, and glob-
alization in a single lens. However, most of the previous stud-
ies have taken CO
2
emission as an indicator of environmental
quality (Ito 2017; Akram et al. 2020;Alietal.2019;
Salahuddin et al. 2019a,2019b). EF includes six types of
bio-productive land-use categories (grazing land, farm space,
carbon footprint, cropland, land for building, and to the
ocean). The EF is the only comparative metric against what
the biosphere will renew the resource demand of government,
corporations, and citizens. Due to the relatively stable
Environ Sci Pollut Res
production growth in developing countries in recent years,
through use of EF is optimal as it analyzes the ecological
effects of producing goods, to encourage a lifestyle needed
(Wachernagel and Rees 1996). (ii) This analysis is distinctive
of analysis techniques developed in the embraced panel data
that yield more accurate and robust forecasts. For the long-run
analysis, we apply the augmented mean group (AMG), which
permits to use of cross-sectional dependency presence in the
series. Morever, the Mean Group (MG) technique, and
Common Correlated Effects Mean Group (CCEMG) also
apply to check the edogeneity problem in the model.
The rest of the paper are organized as follows: the “Review
of related studies”section presents the review of related stud-
ies; in the “Theoretical underpinnings”section, we present the
theoretical underpinnings; the Data and methodology”section
discusses the data sources and methodology; results and dis-
cussion of the empirical analysis is presented in the “Results
and discussion”section, and conclusion and policy implica-
tions are presented in the “Conclusion and policy implica-
tions”section.
Review of related studies
There are extensive studies done on examining the relation-
ship between renewable, non-renewable energy consumption,
trade, urbanization, economic growth, and environmental deg-
radation. Researchers also used different indicators to measure
environmental quality like CO
2
emissions (negative indicator)
and ecological footprint and material footprint (positive indi-
cators). The main objective of our study is to measure the
relationship between renewable energy, non-renewable ener-
gy consumption, urbanization, and globalization on the eco-
logical footprint (EF) in developing countries. Hence, in this
section, we will discuss the previous studies on energy con-
sumption, urbanization, and globalization on ecological foot-
print, and this substantiates our study’sparameterization.
Energy consumption, economic growth, and
ecological footprint
The relationship between energy consumption and ecological
footprint depends on the economic growth or economic struc-
ture of a nation. On the very first level of economic develop-
ment, the energy demand of the country is primarily focus on
the use of non-renewable energy. This has the greatest effect
on environmental degradation because of the gigantic con-
sumption of fossil fuels. After a certain point, there will be a
reverse relationship between energy consumption and envi-
ronmental pollution; this is called environmental Kuznets
curve (EKC). Studies which found similar results in the panel
as well as a individual countries case such as Ahmed and Long
(2013). Gokmenoglu and Taspinar (2018), Seppälä et al.
(2001), Işıketal.(2019), Rauf et al. (2018), Al-Mulali et al.
(2015), Apergis and Payne (2014), Dogan and Turkekul
(2016), Dogan and Seker (2016), Dogan and Aslan (2017),
Dogan (2014), Udemba (2021), and Alharthi et al. (2021). In
other set of literature estimated the existence of EKC hypoth-
esis by using ecological footprint, a study by Uddin et al.
(2016) investigated the relationship between income level
and environmental quality in 22 countries during 1961–
2011. They found that only 10 countries validate the existence
of EKC hypothesis. They suggest that clean technology and
efficient energy resources should be used in the production
process to reduce the ecological footprint in the sample
countries. Similarly, Dogan et al. (2019) examined the deter-
minants of ecological footprint in case of MINT countries for
the period of 1971–2013. They have applied ARDL bound
testing approach for investigating the long-run and short-run
relationship. They found that all four countries show the exis-
tence of EKC hypothesis in the sample period. A recent study
by Haldar and Sethi (2020) investigated the relationship be-
tween renewable energy consumption, economic growth, and
CO
2
emissions in developing countries. They also found the
existence of EKC hypothesis in the sample countries.
A recent study on the linkage between energy consumption
and the ecological footprint was led by Charfeddine (2017)
using the Markov switching model in Qatar. He found that the
ecological footprint and the ecological carbon footprint and
CO2 emissions are positively related to energy use and
financial growth. For a newly industrialized economy,
Destek (2020) found that economic growth and ecological
footprint are positively related to each other. Shahzad et al.
(2020) examined the “relationship between energy consump-
tion and ecological footprint in the USA.”They reported that
economic sophistication and the use of fossil fuel oil substan-
tially increase the ecological footprint of the USA. In compar-
ison, the quantitative causality empirics indicated the presence
of causal connections with the ecological footprint between
economic complexity and energy use. There also many stud-
ies which used other indicators for measuring the environmen-
tal quality like CO
2
emissions (Zhang and Lin 2012;Isenberg
et al. 2002; Salahuddin and Gow 2014; Mert and Bölük 2016;
Ali et al. 2016; Ehigiamusoe and Lean 2019; Apergis and
Ozturk 2015; Apergis and Danuletiu 2014; Altinoz and
Dogan 2021; Bhujabal et al. 2021; Omoke et al. 2020;Saint
Akadiri et al. 2020;Yangetal.2021).
Similarly, the study by Khan and Hou (2021) examined
interlink between energy consumption and ecological foot-
print in 37 International Energy Agency (IEA) during 1995–
2015. They used advanced panel technique for analyzing the
results and found that energy consumption in these countries
is reducing environmental quality in the long run. However, a
study by Sharma et al. (2021) investigates the role of renew-
able energy consumption on environmental quality (proxy of
ecological footprint) in eight developing countries of Asia.
Environ Sci Pollut Res
They have applied cross-sectional autoregressive distributed
lag model (CS-ARDL) for the long-run estimations and found
that renewable energy enhances environmental quality in
these countries. However, the effect of life expectancy is
positive but insignificant. Majeed et al. (2021) studied in
Pakistan on aggregate and disaggregate energy consumption
and environmental quality. They apply non-linear
autoregressive distributed lag (NARDL) model for the analy-
sis, and the empirical results for marginal intake show that
only harmful shocks have a substantial effect on ecological
footprint. Similarly, different forms of energy consumption
have asymmetric impacts on the environment.
Urbanization, globalization, and ecological footprint
A recent study by Rashid et al. (2018) investigated the relation-
ship between urbanization and ecological footprint in two
towns of Pakistan. They found that both the towns have used
ecological footprint than bio-capacity. They suggest that utili-
zation of green energy resources and energy-saving technology
would be the best way to reduce ecological footprint. In con-
trast, Nathaniel et al. (2019) claimed that urbanization and en-
ergy consumption are enhancing environmental quality in the
long run in south Asia during 1965–2014, while Nathaniel et al.
(2020a,2020b) investigated the relationship between renew-
able energy, financial development, and urbanization on eco-
logical footprint in MENA countries and found that urbaniza-
tion and financial development are deteriorating environmental
quality. Urbanization has become a paradigm change from rural
to urban environments with social and economic capacities.
Developing countries have undergone rising urbanization
speeds, while their industrialized counterparts appear to have
high urbanization rates (Sadorsky 2014). Many other studies
empirically analyzed the link between urbanization and
environmental quality. A study by Liang et al. (2019)using
advanced panel technique in the case of China found that due
to urban agglomeration, it has a positive impact on environ-
mental pollution in China. Similarly, a study by Shahbaz
et al. (2019) examined the connection between urbanization
and environmental quality in UAE for a period 1975–2011.
They have found that urbanization worsens environmental
quality. For a developing country, a study by Martínez-
Zarzoso and Maruotti (2011) examined the nexus between ur-
banization and environmental degradation, and the outcome
shows that urbanization and carbon pollution have an inverted
U-shaped relationship. Combining the nations based on thresh-
old analyses implies that pollution-urbanization has been neg-
ative at a given point, and emissions remain constant as urban-
ization goes beyond that point. Other groups’findings suggest
that urbanization would not encourage greenhouse gas emis-
sions, but rather income and population. Sharma (2011)studied
for a panel of 69 nations and found that economic growth,
financial development, and energy use enhance CO
2
emissions,
while urbanization reduces it. Natural systems in mountains
have been severely impact by rapid urbanization. Ecological
footprint is a vital basis for determining whether a country or
region’s growth is beyond its bio-capacity as a metric of fair
utilization of natural resources (Ding and Peng 2018). Long
et al. (2017) stated that ecosystems are subject to a variety of
complex and heterogeneous effects because of urbanization.
They have used ecological footprint to show the
environmental sustainability in the sample period. A recent
studybyGodiletal.(2021) investigated the relationship be-
tween transport service, financial development, and urbaniza-
tion on ecological footprint in Pakistan during 1980–2018.
They have used quantile autoregressive distributed lag
(QARDL) model for the long-run and short-run analysis.
They found that transport service and financial development
are enhancing environmental quality while urbanization
deteriorating it. A recent study by Nathaniel et al. (2021) found
that urbanization and natural resources are negatively related
with ecological footprint.
According to Shahbaz et al. (2017a,2017b), globalization
means the transfer of technologies via industrialized to emerg-
ing markets by foreign direct investment (FDI) and imports,
assistance in dividing labor, and increase in the value creation
of the respective economies. Globalization has a strong
influence on global prosperity with an increase in economic
growth. Absolute productivity, FDI, and commerce thus
implicitly rise energy use and depletion of the ecosystem. In
comparison, Lv and Xu (2018) found that globalization re-
duces environmental quality. Similarly, for an 83 nations stud-
ied, You and Lv (2018) found an “undesirable association
between globalization and CO
2
emissions.”In contrast,
Kwabena Twerefou et al. (2017) explored the correlation be-
tween globalization and environmental impacts for a panel of
36 African countries using GMM methodology. Similarly,
with a panel of 25 developing countries, Shahbaz et al.
(2018) investigated the impact of globalization on CO
2
emis-
sions. It is important to note that the results show a favorable
effect of globalization on pollution in developing economies.
Using panel-estimating methods, Salahuddin et al. (2018)
found that globalization improves environmental quality in
SSA regions, while urbanization worsens it. Martens and
Raza (2010) used the Maastricht globalization index (MGI)
to analyze globalization’s competitiveness against numerous
sustainability parameters. They could not find any relation
between them. A study by Ahmed et al. (2019) found that
there was not any significant relation with globalization and
ecological carbon footprint in Malaysia. However, it shows
positive relation with ecological footprint. From the above
literature, we found that there is a diverse finding between
globalization and ecological footprint. There are fixed find-
ings about the globalization and ecological footprint from the
literatures (Dogan 2016; Sabir and Gorus 2019; Usman and
Hammar 2021; Nathaniel et al. 2021)
Environ Sci Pollut Res
Trade openness, population, and ecological footprint
Through the several channels, trade openness can have a poten-
tial effect on the ecological footprint, and this influence can be
either beneficial or harmful. This trajectory of influence is deter-
mined by the degree of growth and industrialization in a country.
In the case of an advanced and developing world, the importation
of enhanced technological innovations and efficient manufactur-
ing practices is possible, and trade openness has an impact on the
climate through technology. Due to such consequences, mostly
during the manufacturing process, environmental quality is en-
hanced. On the opposite, the main priority of lawmakers of any
nation at the earlier stage of development is to achieve prosperity,
even at the expense of the environment (Destek 2020). However,
to improve efficiency, inexpensive and polluting technology is
introduced into certain countries, and in this instance, the tech-
nique impact of trade openness negatively affects the ecological
standard (Al-Mulali and Ozturk 2015). A recent study in the
emerging country by Aydin and Turan (2020) examines the
“relationship between financial openness and trade openness
on the ecological footprint in BRICS countries.”They found that
in China and India, trade transparency has lowered
environmental emissions, while in South Africa, it has
increased. Similarly, a study by Kongbuamai et al. (2020)inves-
tigate the linkages between trade openness, population density,
and economic growth on the ecological footprint in Thailand.
They revealed that trade openness has reduced environmental
quality, while population density increased during the study
period. Similarly, Uddin et al. (2017) apply DOLS for the
long-run estimations between economic growth, financial devel-
opment, and trade openness on ecological footprint in 27 high-
emitting countries and found that real income has positive effect
on ecological footprint, while trade openness has negative effect
but insignificant. However, a study by Ali et al. (2020)using
dynamic common correlated effect in OIC countries during
1991-2016 found that trade openness has positively affected
ecological footprint in these countries during the sample period.
They found that trade openness has positively affected ecological
footprint in these countries during the sample period. Mrabet and
Alsamara (2017) have used two models for the empirical inves-
tigation between trade openness and financial development on
CO
2
emissions and ecological footprint. They found that trade
openness was positive link with CO
2
emissions whereas nega-
tively related with ecological footprint. It means in ecological
footprint case, trade openness enhances environmental quality
in the long run.
Population size affects the size of a person’s average eco-
logical footprint. A density of population implies that in that
country, there is a lot of land area per person. There could be
more land and services available for an individual to use in
his/her way of living. However, if the landscape is quite re-
source-limited, a low population density (Niccolucci et al.
2012) will not improve the ecological footprint size. There
could be more land and services available for an individual
to use in his/her way of living. The relationship between pop-
ulation and ecosystem has been recognized since Malthus
(1798). Toth and Szigeti (2016) claimed that environmental
degradation is not due to increase in population; it is because
of the consumption pattern of individuals. From the above
literature, we found that there are dearth of studies that have
been done on environmental quality in case of country-
specific or panel studies. However, very few studies have
carried out in developing countries case. Many studies have
not taken care the endogeneity issue, while in this paper, we
apply advance econometrics technique to solve the issue. Last
but not the least, we have taken ecological footprint for the
measurement of environmental quality in developing coun-
tries, by taking the variables like renewable and non-
renewable energy, urbanization, and natural resources. In this
way, this study adds contribution to the previous literatures.
Theoretical underpinnings
Ecological footprint monitors nature’s demand and supply. The
ecological footprint calculates on the demand side, the ecolog-
ical assets needed by a civilized group to generate the natural
resources it uses and to contain its waste, in particular carbon
emissions. The ecological footprint monitors six types of viable
surface areas: “cropland, livestock fields, fish stocks, built-up
land, woodland areas, and demand for carbon on land.”The
bio-capacity of a country on the supply side reflects the pro-
ductivity of its biological properties. It absorbs the waste par-
ticularly carbon emissions (Bilgili and Ulucak 2018). Initially,
Rees (1992), later it was developed by Wachernagel and Rees
(1996) and coined the term ecological footprint.
In pursuit of environmental analyses, ecological footprint
measure is commonly use around the world (Van den Bergh
and Verbruggen 1999). It encourages individuals in the econ-
omy to quantify and optimize the utilization of capital and
investigate the viability of consumer lifestyles (GFN, 2019).
Many studies also used the term carbon footprint, which is
expressed as the weight of CO
2
. Carbon footprint is a part of
ecological footprint. Hence, in this paper, we used ecological
footprint and its macro determinants in developing countries,
i.e., renewable and non-renewable energy consumption, ur-
banization, globalization, population, and trade.
In the twentieth century, along with the exponential in-
crease of the human population, there was extensive migration
to major cities. The subsequent losses in biodiversity and
shifts in habitats rival some of the mass extinctions suffered
by the planet in the past (Magurran and Dornelas 2010). Most
improvements in the landscape, including agricultural and in-
dustrial use, are the result of human land-use activities. In this
land-use practice, urbanization is exceptional in both the
speed as well as the degree of all its effect on natural
Environ Sci Pollut Res
ecosystems (Wear and Bolstad 1998). Globalization is char-
acterized as “a move to a more interconnected, interdependent
global economy from self-constrained and independent na-
tional economies with trade and investment barriers, regula-
tions, and cultural differences”(Ahmed et al. 2019). Through
trade and foreign direct investment channels, globalization
may influence the environment. For example, while starting
or expanding their business ventures, foreign investors can use
sophisticated technology to improve the quality of the envi-
ronment by reducing energy demand.
It is very important to know effects of human capital on
ecological footprint. Ecological learning is a way that encour-
ages people to discuss global hazards, participate in solving
problems, and take steps to change the ecosystem (Daniels
and Walker 1996). As a result, people have a better under-
standing of environmental challenges and have the skills to
build informed and rational choices. Human capital decreases
the use of fossil fuels, which ultimately increases the
efficiency of the atmosphere by controlling high carbon
emissions without affecting economic development.
Knowing the idea of ecological footprints shows that the
populace is such a key element of development. Rees (1992)
explicitly showed that mankind cannot afford to consume
more than the Earth can create, by developing a quantitative
instrument for understanding the availability and demand for
natural resources. There will be a mismatch between the de-
mand and supply of resources if population growth will be
accelerating. According to GFN (2018), when the demand
for natural resources is higher than supply, it is called an
ecological deficit or when the population growth rate is higher
than the area’sbio-capacity.Valinetal.(2013) pointed out
that one-third of environmental degradation is cause by global
food production. Each human introduced to the Earth needs to
feed, which increases the global production of food steadily
and, as a result, increases the number of greenhouse gases that
reach the atmosphere. By considering the above linkages of
ecological footprint, we have chosen explanatory variables
like urbanization, globalization, trade, renewable, population
density, and non-renewable energy consumption in develop-
ing cases. Figure 1describes the relationship between the
dependent variable and independent variables graphically.
Data and methodology
Data
We use the annual data of 36 developing countries (see
Table 10 Appendix) from 1990 to 2016. The period of this
study is based on the data availability of the main variable
“ecological footprint.”For determining environmental quali-
ty, we use data of ecological footprint per capita measured as
global hectares (gha/person). Many researchers also proposed
this indicator for calculating environmental quality (Isenberg
et al. 2002; Nathaniel et al. 2019; Shahzad et al. 2020). The
description of the variables is presented in Table 1as follows:
Model specification
The main objective of thispaper is to examine the relationship
between urbanization, globalization, and natural resources on
ecological footprint. To achieve this objective, we follow
studies such as Stöglehner (2003), Zhao et al. (2005), Miller
et al. (2013), Figge et al. (2017), and Sabir and Gorus (2019)
by including an inclusive measurement of urbanization and
globalization index on ecological footprint as follows:
EF ¼fGDP;RE;NRE;TR;GI ;URB;PO;NR;HCðÞð1Þ
where EF represents ecological footprint, GDP is economic
growth, RE and NRE denote renewable and non-renewable
energy consumption, TR istrade openness, GI measures glob-
alization index, and urbanizationsymbolized as URB. POand
NR denote population density and natural resources, respec-
tively. HC represents human capital index based on the aver-
age year of schooling (Barro and Lee 2013). To smoothness
the data, all variables are transformed into natural logarithmic,
and this may produce appropriate long-run results (Sahoo and
Sethi 2020a; Sahoo and Sethi 2020b). The above functional
form can be written as:
lnEFit ¼ϒ0þϒ1lnGDPit þϒ2lnREit þϒ3lnNREit
þϒ4lnTRit þϒ5lnGIit þϒ6lnURBit
þϒ7lnPOit þϒ8NRit þϒ9HCit þεit ð2Þ
Ecological
Footprint
Economic
growth (+)
Renewable
energy (-)
Non-renewable
energy (+)
Trade (+/-)
Globalizaon(-)Urbanizaon(+)
Populaon (+)
Natural
resources (+)
Human Capital
(-)
Fig. 1 Conceptual framework. Source: Author’s construction
Environ Sci Pollut Res
where t denotes the time period from 1990 to 2016, i repre-
sents the countries observe in this paper, and εis the error
term. ϒ
0
…ϒ8 discuss the log run coefficient of variables used
in this paper.
Econometrics methods
Cross-sectional dependency and slope homogeneity test
In the first case of panel studies, it is essential to examine the
CD test. Otherwise, it will give spurious results. Growing
associations trigger cross-sectional dependency (CD) across
socio-economic structures and typical unidentified shock,
which makes traditional panel estimation methods inaccurate.
Hence, ignoring cross-sectional dependence will also have
severe implications (Ertur and Musolesi 2017). It is best to
work with CD even though standard unit root testing implies
cross-section independence. Therefore, depending on
methods that presume cross-sectional independence, it can
yield inaccurate findings. We use CSD to fulfill this function,
which was introduced by Pesaran (2007). The CD equation is
given as:
CD ¼ffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi
2T
NN−1ðÞ
s∑N−1
i¼1∑N
j¼iþ1b
ρij
ð3Þ
Besides, we have applied a slope homogeneity test in our
model. It was developed by Pesaran and Yamagata (2008).
Thetestequationiscalculatedthrough“delta-tilde and adjust-
ed delta-tilde.”
Unit root test
The normal unit root tests in models presume that “indepen-
dence of cross-sections and slope homogeneity and can there-
fore generate misleading consequences.”In this paper, we use
a second-generation unit root test, which checks the problem
of CD in the equation. The second-generation tests used in this
paper are CIPS and CADF introduced by Pesaran (2007). The
equation for the CIPS can be written as:
Δzit ¼αiþβizi;t−1;þρiTþ∑n
j¼1δijΔzi;t−1þεit ð4Þ
swhere z
it
is respect variables, ρis deterministic compo-
nents, δis level of significance, and εis error term in the
model. We can get the cross-sectional augmented Dickey
Fuller (CADF) from the above equation:
CIPS ¼1
N∑N
i¼1CADFIð5Þ
where CADF
i
represents “cross-sectional augmented dick-
ey fuller test”and N is the number of observations.
Co-integration test
To examine the long-run elasticity among the variables, it is a
prerequisite to test the co-integration on the sated variables. In
this paper, we apply the Westerlund (2007) panel co-
integration technique to get the association among the vari-
ables. The main advantage of the technique is that it controls
slope heterogeneity and cross-sectional dependency in the
model. This test has four results: two results indicate group
statistics, and the other two denote panel measurement. The
Table 1 Description of the variables
Variables Symbol Measurement Sources
Dependent variable
Ecological Footprint EF Ecological footprint per capita as global hectares (gha/person) GFN (2018)
Independent variables
Gross domestic product GDP GDP (constant $2010) World Bank (2018)
Renewable energy RE Total final renewable energy consumption (kilo tons) IEA (2019)
Non-renewable energy NRE Non-renewable energy consumption to primary energy (kilo tons) IEA (2019)
Trade TR Total export minus import (% GDP) World Bank (2019)
Globalization index GI Economic, social, and political dimensions of globalization KOF Swiss Economic Institute, Dreher (2006).
Urbanization URB Urban population (% of total population) World Bank (2019)
Population density PO Population density (people per square land of area) World Bank (2019)
Natural resources NR Total natural resources rent (% of GDP) World Bank (2019)
Human capital HC Index of human capital per capita Penn World Tables (PWT 9.0.)
Notes: IEA represents the International Energy Agency; GFN is Global Footprint Network
Source: Authors’compilations
Environ Sci Pollut Res
co-integration test of the error correction base is presented in
Eq. (6).
Δyt¼γidtþρiyi;t−1−βixi;t−1
þ∏ηi
j¼1δijΔyi;t−j
þ∏ηi
j¼0δijΔxi;t−jþεit ð6Þ
where cross-sections are indicated by N (i = 1,………,N)
and T (t = 1, ……,T) denotes number of observations.
AMG, MG, and DCCE technique
Once the long-term co-integration of variables has been
established, the next procedure is to examine the magnitude
of the variables. Several studies have claimed that CD occurs
between nations because of economic shocks and unobserved
components like trade openness and globalization. In this
modernization period, global developments in some countries
because of trade openness, each nation has been greatly influ-
enced (Dogan et al. 2020). To know the main results of this
study, we have applied the “augmented mean group (AMG),
mean group (MG) introduced by Pesaran et al. (1999), and
dynamic common correlated effect (DCCE) technique.”
Chudik and Pesaran (2015) developed the DCCE technique.
Compared to other conventional approaches, this estimation
methodology is more appropriate even in the presence of CD
and common shock. The strategy of the DCCE can comfort-
ably deal with by considering heterogeneous slopes in which
the parameters differ through cross-sections, heterogeneity,
and CSD problem in results. For robustness, we have used
“full modified ordinary least square (FMOLS) and dynamic
OLS (DOLS).”The FMOLS and DOLS are also extremely
effective in overseeing the effective processing of the prob-
lems of heterogeneity and serial correlations (Danish et al.
2018).
Panel D-H causality test
The non-causality test for Dumitrescu and Hurlin 2012) (D-H)
coping the heterogeneous panels and CD. This test is applica-
ble when T<N and T>N (Dogan and Seker 2016). The D-H
technique can be written as:
Yit ¼θiþ∑J
j¼1γi
JXit−1ðÞ
þ∑J
j¼1ηIYit−jðÞþεit
ð7Þ
where γ
ij
and η
ij
represent the coefficient of estimator,
which fluctuate across all nation. Y and X measures the cau-
sality. The D-H causality test as follows:
H
o
:α
i
=0 for θ
i
H1:αi¼0foralli¼1;2;3;…………:Ni
αi¼0foralli¼Nþ1;2;3;…………Ni
ð8Þ
Here H
0
and H
1
represent the null and alternative hypoth-
esis, respectively.
Results and discussion
The descriptive and correlation matrices are presented in
Table 2. In descriptive statistics, we discuss the mean, stan-
dard deviation, minimum, and maximum of series used in this
study. It is observed that the average value of ecological foot-
print, GDP, renewable, and non-renewable energy is 1.25,
3.48, 6.62, 4.54, and 6.85, respectively. However, the average
values of natural resources, globalization, and urbanization are
2.41, 5.90, and 2.75, respectively. Standard deviation mea-
sures the dispersion or spread of value from the mean. In our
case, it has shown that the standard deviation of ecological
footprint is 2.52, which means different countries have a dif-
ferent footprint as per their consumption, population, and area
of bio-capacity. Similarly, std. deviation of urbanization, pop-
ulation, and natural resources varies across different develop-
ing countries. The minimum and maximum values in our ob-
servation are 0.10 and 96.24, respectively.
The correlation matrix is presented in Table 2.Itmeasures
the strength of the linear correlation between the variables.
Some variables are positive, and some are negatively related
to each other significantly. It is described that “economic
growth and ecological footprint are positively related to each
other.”The ecological footprint tracks not just emissions as a
direct result of economic activity, but also the loss of resources
needed to facilitate economic activity. Hence, available bio-
capacity may affect economic growth in developing countries.
Similarly, natural resources, population density, urbanization,
and non-renewable energy consumption have positively relat-
ed to EF. However, renewable energy, human capital, global-
ization, and trade are negative and significantly affect ecolog-
ical footprint.
In next step, we verify whether the cross-sections are inter-
dependent. This is important for the selection of the required
root unit and tests for co-integration. Table 3discusses the CD
tests. It implies a transmission of shock in one country against
the other. The null is that “there are independent among the
countries against the alternative hypothesis of a cross-
sectional dependency across the regions.”The results of the
CD test delineate the cross-sectional dependency across the
developing countries as it rejects the null hypothesis at a 1%
level of significance. We also apply the Pesaran and
Yamagata (2008) homogeneity test, which suggests a meth-
odology to try to know the homogeneity of the slope in this
study. The slope homogeneity test is presented in Table 4.As
per the results of both CD and slope homogeneity tests, we use
heterogeneous panel models as well as the panel techniques
which control the cross-sectional dependency.
Environ Sci Pollut Res
After knowing the CD and slope of homogeneity in the
sample, we apply the cross-section augmented Dickey-Fuller
(CADF) and cross-section Im-Pesaran (CIPS) unit root test as
per the recommendation of Pesaran (2007). Table 5presents
the panel unit root tests. To know the order of integration, it
shows that all variables in the series are stationary at level and
it became stationary after first differentiation. Hence, order of
integration of variables is I (1) at different levels of
significance.
The conventional panel co-integration test like Pedroni,
Kao, and Fisher techniques does not capture the cross-
sectional dependency. Hence, in this paper, we apply
Westerlund 2007co-integration, which can be used in the pres-
ence CD. In Westerlund, co-integration has four coefficient
parametersi.e., two are group coefficient and the other two are
panel coefficient, which are presents in table 6. The results
from co-integration reveal that we can reject the null hypoth-
esis of no co-integration and accept the alternative hypothesis
of co-integration among the variables in the sample period.
The result in Table 7discusses the effect of the long-run
elasticity of independent variables on the dependent variable
or ecological footprint. We apply three long-run tests, i.e.,
mean group (MG), augmented mean group (AMG), and
dynamic common correlated effects (DCCE) approach. The
results of MG reveal that economic growth increases ecolog-
ical footprint in developing countries, or it reduces environ-
mental quality. There is always a range of contributors to the
degree of economic growth and prosperity in each nation. To
promote high growth, developing countries adopted different
mechanism, and the available potential of natural resources.
Development may have detrimental environmental conse-
quences. There are many aspects, which include environmen-
tal (pollution), nature reserves overuse, wildlife destruction,
and depletion, and climate change. These are the main prob-
lems that may be confronting developing countries; the dete-
rioration in environmental sustainability is considered a major
problem in the present and long-lasting living conditions of
the population. This finding is stable with Hassan et al. (2019)
for BRICS economies, Aşıcıand Acar (2016) for developing
countries, and Ahmad et al. (2020) for emerging economies.
However, renewable energy consumption reduces the eco-
logical footprint in developing countries. One percent increase
in renewable energy consumption leads to a reduced ecolog-
ical footprint by 0.04%. In line with this, in their respective
studies, Sinha et al. (2017) have determined that an intensifi-
cation of the use of renewable energy technologies could
Table 2 Descriptive and
correlation matrix EF GDP RE NRE TR GI URB PO NR HC
Mean 1.25 3.48 6.62 4.54 6.85 5.90 2.75 0.78 2.41 0.58
Std. deviation 2.52 0.45 0.56 0.98 0.63 0.54 1.88 2.54 4.75 0.49
Min. 0.57 2.48 1.58 0.96 1.75 0.57 0.86 0.10 0.78 0.04
Max. 85.71 45.05 96.24 56.45 75.52 10.63 80.45 5.75 8.85 0.79
EF 1
GDP 0.05* 1
RE −0.45* 0.10* 1
NRE 0.36* 0.218 0.11* 1
TR −0.03 0.45* −0.42 0.26* 1
GI −0.08* 0.13* 0.05* 0.12* 0.45* 1
URB 0.31* 0.30* 0.03* 0.40* 0.43* 0.31* 1
PO 0.24* 0.09 0.43 0.35* 0.12* 0.41* 0.24* 1
NR 0.02* 0.20* 0.31* 0.25* 0.40* 0.36* 0.13* 0.06* 1
HC −0.30* 0.32* 0.01* −0.13* 0.30* 0.05* 0.01* 0.42* −0.02* 1
Notes: * represents 1% level of significance
Source: Authors’calculation
Table 3 Cross-sectional
dependence test EF GDP RE NRE TR GI URB PO NR HC
Pesaran CD 0.54* 1.41* 5.12* 9.11** 2.42* 4.72* 4.31** 2.04* 5.06** 1.04*
Pvalue 0.002 0.000 0.000 0.012 0.004 0.000 0.030 0.000 0.024 0.003
Notes: * and ** represent 1 and 5% level of significance
Source: Authors’calculation
Environ Sci Pollut Res
regulate ecological footprint. Hastik et al. (2016)haveindicat-
ed that renewable energy use alone could not solve environ-
mental challenges without improving energy-saving
manufacturing processes.
Further, the study revealed that non-renewable energy
consumption endorses an ecological footprint. To cope
up with the current momentum, developing countries
are highly using fossil fuel energy. The use of non-
renewable energy consumption leads to increase extrac-
tion of natural resources like coal and oil. Furthermore,
the growth of the service industry, which is the product
of economic development, will continue energy needs
and, thus, contribute to emissions, thereby reducing en-
vironmental quality. The continuous use of carbon-based
energy has a direct impact on our health and well-being,
all of which are directly related to the environmental
consequences of non-renewable energy. Evidently, the
use of non-renewable energy sources has many adverse
consequences on our environment, either because of how
they are produced and stored or because they are used
and ultimately disposed of. Accordingly, the continuing
use of fossil energy turned out to be dangerous for the
nature of the atmosphere, resulting in an improvement in
the ecological footprint in these countries. Therefore, to
ensure sustainable progress in these countries, it is im-
portant to substitute fossil fuel solutions with clean en-
ergy solutions to promote the growth pattern (Dincer
2000).
Similarly, trade openness shows a positive relationship
with the ecological footprint. As economic growth and
trade are closely connected, this may lead to an increased
ecological footprint in developing countries. Economic
growth arising from trade expansion may have an appar-
ent direct effect on the bio-capacity. The finding is sim-
ilarly in line with Al-Mulali et al. (2015). They have also
found that trade openness, urbanization, and energy use
increase the ecological footprint in 58 countries. In the
same way, urbanization is positively related to the eco-
logical footprint. As the pace of growth of urbanization
varies across regions, it is very important to remember
that rapidly due to migration of people from rural areas
to urban areas for better life, developing countries’pop-
ulation in urban areas are growing. As the population is
overcrowded in the urban areas, they demanded more
energy consumption, and it will create an imbalance in
the regeneration of resources and absorption of waste.
Martínez-Zarzoso and Maruotti (2011)foundsimilarre-
sults in the case of developing countries while using
CO
2
-based indicator as environmental quality.
Unlike urbanization, globalization reduces the ecological
footprint in sample countries. It means globalization enhance
environmental quality in developing countries in the study
period. Through globalization, advanced or efficient technol-
ogy is a transfer from developed countries to developingcoun-
tries. There are many advantages for globalizations to the en-
vironment like it lowers the cost of production, developing
Table 4 Results of Pesaran-Yamagata homogeneity test
EF GDP RE NRE TR GI URB PO NR HC
Delta 45.21* 63.48* 23.75* 12.51** 29.45* 13.45* 28.40* 51.12** 14.19** 23.12*
Adjusted delta 51.89* 86.52* 42.84** 14.72* 46.24* 49.12* 32.49* 54.71** 34.56* 47.01*
Notes: * and ** represent 1 and 5% level of significance
Source: Authors’calculation
Table 5 Results of CIPS and CADF panel unit root tests
CADF CIPS
Level 1
st
difference Level 1
st
difference
EF −2.42 −2.96** −2.12 −4.52**
GDP −1.21 −3.45** −1.96 −3.45**
RE −1.86 −2.76** −1.36 −3.86**
NRE −2.78 −5.42* −2.42 −4.15*
TR −1.65 −4.12** −1.23 −3.72**
GI −1.52 −3.45** −1.85 −3.62**
URB −1.32 −3.75* −1.62 −5.23*
PO −2.91 −4.72** −2.63 −5.27*
NR −1.06 −3.51* −1.40 −3.81*
HC −1.54 −3.46** −2.66 −4.12**
Notes: * and ** represent 1 and 5% level of significance
Source: Authors’calculation
Table 6 Westerlund’s
panel co-integration test Statistics Coefficient P value
G
t
−2.39** 0.04
G
a
−3.58* 0.00
P
t
−2.78** 0.05
P
a
−4.61* 0.00
Notes: * and ** represent 1 and 5% level
of significance
Source: Authors’calculation
Environ Sci Pollut Res
better environmental regulations and standards. Via forums
for international practices such as fair trade and eco brands,
it has been at the forefront of building public awareness of
labor and environmental standards. This result is also hold up
by literatures like Ansari et al. (2020) and Zafar et al. (2019).
Similarly, the natural resource has a positive effect on the
ecological footprint. It means that 1% increase in natural re-
sources is leading to a growth of 0.75% in ecological foot-
print. The positive value of the natural resources’coefficient
means that countries with no natural resource will import en-
ergy from fossil fuels (e.g., oil or gas) (Balsalobre-Lorente
et al. 2018). These findings indicate that these developing
countries are not adequately exploiting their natural resources
and are using poor energy policies that are unable to reduce
the country’s dependency on traditional sources of energy.
The ecological footprint in developing countries, especially
in relation to their mining activities, can be attributed to the
influence of the availability of natural resources. Natural re-
sources play a beneficial role in environmental destruction as
sustainable and maintenance options are balanced with de-
mand and development. As a result, the rate of natural re-
source loss and environmental stress decreases, allowing nat-
ural resources to recover.
However, the result delineates that human capital reduces
the ecological footprint in developing countries. This means
that an increase of 1% in human resources improves environ-
mental sustainability by 0.20%. Standard living, education,
and life expectancy measure human capital. When education
and living conditions are improved, wages increase, and clean
energy options are used rather than risks that obstruct a health-
ier way of life. Education also increases awareness among the
people about the use of energy-saving or green technology in
their daily life. The studies which are similarly in line with our
findings are Ahmed and Wang (2019), Hassan et al. (2019),
Chen et al. (2019), and Nathaniel (2020). However, the
coefficient of population density is positive but not significant.
We also found that the results of AMG and DCCE confirm the
same sign and magnitude as the dependent variable.
Robustness check
We have applied FMOLS and DOLS for the robustness check.
The FMOLS and DOLS are superior to OLS estimator be-
cause they permit to apply in case of small sample and control
endogeneity problem. Table 8discusses the results of FMOLS
and DOLS.
The results of FMOLS and DOLS also support the
previous long-run results of MG, AMG, and DCCE.
The results reveal that economic growth, non-renewable
energy, trade openness, urbanization, and natural re-
sources abundance are increasing ecological footprint
significantly. However renewable energy consumption,
globalization index, and human capital reduce it, thereby
enhancing the environmental quality in the sampled
countries. Hence government of each nation should more
focus on the investment in the renewable energy sector
and make stringent environmental policies for protecting
the domestic nation from environmental issues.
The causal interaction among the stated variables is
describes in the D-H causality test in Table 9.Thistest
is more suitable in the case of heterogeneous panels and
the presence of cross-sectional dependency in the mod-
el. The D-H causality test reveals that there are feed-
back effects on economic growth to ecological footprint,
ecological footprint to globalization, and ecological
footprint to natural resources and trade to globalization
in these countries. This supports the idea that urbaniza-
tion in these economies is a significant concern.
However, urbanization, trade openness, renewable ener-
gy, and population density drive ecological footprint.
Table 7 Results of MG, AMG,
and DCCE tests Variables MG AMG DCCE
Coefficient t statistics Coefficient t statistics Coefficient t statistics
GDP 1.57* 6.08 2.16* 7.47 1.75* 6.40
RE −0.04** −3.64 −0.07** −2.38 −0.06** −3.89
NRE 0.68* 5.05 0.74* 6.29 0.14* 5.38
TR 0.09** 1.65 0.33** 3.05 0.03** 3.99
GI −0.17** −1.21 −0.58* −6.80 −0.72** −2.35
URB 0.27** 2.02 0.04** 2.76 0.02** 2.31
PO 0.05 0.03 0.66 0.02 0.45 0.08
NR 0.06** 4.09 0.26* 5.91 0.56** 3.95
HC −0.36* −5.98 −0.41* −6.36 −0.19** −2.21
Notes: *, **, and *** represent 1, 5, and 10% level of significance
Source: Authors’calculation
Environ Sci Pollut Res
These findings are similarly in line with Nathaniel et al.
(2020a,2020b), Chen and Fang (2018), and Nyasha
et al. (2018).
Conclusion and policy implications
This paper examines the relationship between renewable ener-
gy, non-renewable energy, globalization, natural resources, and
human capital on ecological footprint for a balanced data of 36
developing countries from 1990 to 2016. We consider other
explanatory variables like urbanization, economic growth,
trade openness, and population in this study. Cross-sectional
dependency and second-generation unit root tests are employed
to know the dependency among the cross-sections and order of
integration among the variables to use in this paper. After get-
ting the results of the order of integration, we apply Westerlund
(2007) panel co-integration, as it can be used in the presence of
cross-sectional dependency in the series. To know the main
results of our analysis or long-run elasticity among the inde-
pendent variables and dependent variables, MG, AMG, and
DCCE panel techniques are employed. Results of MG reveal
that economic growth increases ecological footprint in devel-
oping countries, or it reduces environmental quality. There is
always a range of contributors to the degree of economic
growth and prosperity in each nation. Development mecha-
nisms were established in various economies depending on
the unique features of each nation and the possible natural
resources required encouraging high growth. Development
may have detrimental environmental consequences. This find-
ing is like “Hassan et al. (2019) for BRICS economies, Aşıcı
and Acar (2016) for developing countries, and Ahmad et al.
(2020) for emerging economies.”
Consumption of renewable energy in developing countries
lowers ecological footprint. Our results supported the findings
of Sinha et al. (2017). They found that intensification of the use
of renewable energy technologies could regulate ecological
footprint in the long run. Hastik et al. (2016)indicatedthat
renewable energy use alone could not solve environmental
challenges without improving energy-saving manufacturing
processes. However, non-renewable energy consumption en-
dorses an ecological footprint. To cope up with this situation,
developing countries are highly using fossil fuel energy. The
use of non-renewable energy consumption leads to increase
extraction of natural resources like coal and oil. Furthermore,
the growth of the service industry, which is the product of
economic development, will continue energy needs and, thus,
contribute to emissions, thereby reducing environmental qual-
ity. Accordingly, the use of fossil energy turned out to be
dangerous for the nature of the atmosphere, resulting in an
improvement in the ecological footprint in these countries.
Therefore, “to ensure sustainable progress in these countries,
it is important to eventually substitute fossil fuel solutions with
clean energy to promote the growth pattern”(Dincer 2000).
However, the result delineates that human capital reduces
the ecological footprint in developing countries. It means a
1% increase in human capital reduces 0.20% of ecological
footprint or increases environmental quality. Standard living,
Table 8 Results of FMOLS and DOLS tests
Variables FMOLS DOLS
Coefficient t statistics Coefficient t statistics
GDP 2.18* 6.78 1.61* 5.09
RE −0.10** −3.24 −0.23** −4.38
NRE 0.98* 5.62 0.51** 2.27
TR 0.01** 3.91 0.09** 4.22
GI −0.46* −6.01 −0.69** −5.00
URB 0.07** 2.48 0.13** 3.49
PO 0.37 0.05 0.78 0.12
NR 0.75** 3.42 0.15** 4.21
HC −0.20** −2.26 −0.03*** −1.64
Notes: *, **, and *** represent 1, 5, and 10% level of significance
Source: Authors’calculation
Table 9 Results of D-H Granger non-causality test
Null hypothesis W-bar Probability value Direction
EF≠GDP 8.35 0.008 EF↔GDP
GDP≠EF 10.54 0.000
RE≠EF 9.41 0.000 RE→EF
EF≠NRE 6.74 0.005 EF→NRE
URB≠EF 4.72 0.034 URB→EF
TR≠EF 5.36 0.002 TR→EF
EF≠GI 7.39 0.000 EF↔GI
GI≠EF 8.41 0.000
EF≠NR 5.02 0.026 EF↔NR
NR≠EF 6.64 0.013
PO≠EF 5.86 0.038 PO→EF
GDP≠RE 4.30 0.064 GDP→RE
NRE≠GDP 6.45 0.004 NRE→GDP
TR≠GDP 4.96 0.060 TR→GDP
GI≠GDP 7.62 0.000 GI→GDP
NR≠GDP 9.45 0.000 NR→GDP
RE≠GI 8.53 0.000 RE→GI
NR≠RE 5.26 0.007 NR→RE
PO≠RE 4.25 0.047 PO→RE
PO≠NRE 6.79 0.003 PO→NRE
TR≠NRE 8.22 0.000 TR→NRE
GI≠NRE 7.54 0.001 GI→NRE
TR≠GI 5.12 0.009 TR↔GI
GI≠TR 8.55 0.000
Source: Authors’calculation
Notes: ≠represents “does not homogeneously cause”
Environ Sci Pollut Res
education, and life expectancy measure human capital. When
education and living conditions are improved, wages increase,
and clean energy options are used rather than risks that ob-
struct a healthier way of life. Hence, government of each na-
tion should more focus on the investment in the renewable
energy sector and improvement of quality education and make
stringent environmental policy for protecting the domestic
nation from environmental issues.
From the empirical results, we suggest some important pol-
icy implications of this paper. As the results indicate that non-
renewable energy, consumption increases ecological foot-
print. This suggests that appropriate environmental policies
are required in the developing countries to mitigate the eco-
logical footprint. This necessitates serious intentions to in-
crease energy efficiency and reduce the share of fossil fuels
in the energy mix while still considering renewable energy’s
considerable potential in this regard. As the elasticity of re-
newable energy, consumption is negative and significant.
More importantly, the importance of renewable energy use
indicates that the developing economies are on track to be-
come carbon-free and achieving long-term prosperity.
Government and policy makers should focus on the more
production of renewable energy, and respective government
of each country should allocate more funds for the innovation
of infrastructure development in the renewable energy sector.
To create a sustainable future, it is recommended that devel-
oping country should increase the share of renewable energy
in their energy mix, handle their natural resources effectively,
and monitor their urbanization trend in a similar way to their
current consequences. Government should provide subsidies
for using the clean energy in these countries, so that people
will prefer to use more renewable energy than the fossil ener-
gy consumptions. These renewable energy sources vary from
fossil fuels in that they are pure and emit few pollutants.
Increased investment in environmentally sustainable technol-
ogy would reduce pollution while also boosting productivity.
In the case of natural resources, illegal activities such as ex-
traction and logging are widespread, so enhanced public con-
sciousness and stringent legislation are needed to keep this
nefarious behavior in check. Government should make it easy
for the small-scale miners for getting the license simpler.
Furthermore, when dealing with national energy protection
challenges, lawmakers should pay attention to natural re-
source mining practices by requiring businesses that harvest
mineral resources to use energy-efficient equipment in their
operations. As urbanization, showing positive effect on eco-
logical footprint, hence smart infrastructure and electricity hy-
brid cars can be introduced to transform urban traffic to green
transportation. Eventually, environmental awareness and
emerging educational reform practices can continue to reap
the benefits of long-term sustainability.
The present study has some limitations as follows: (i) it is
only focused on developing countries, (ii) the study is limited
to the period up to 2016 due to unavailability of data of eco-
logical footprints, and (iii) the study also ignored some of the
important variables such ecological footprints, globalization,
and natural resources due to unavailability data for some
countries. It can be further carried out by including all the
developing countries. Moreover, we have used ecological
footprints as a proxy of environmental pollution in our study;
however, other environmental indicators such as nitrogen and
sulfur emissions and carbon and material footprint may also
be added for further analysis. In addition, as per the develop-
ment of new empirical methodology, advanced methodolo-
gies can be applied for the empirical analysis.
Acknowledgements The authors are grateful to the Editor-in-Chief and
Editor, Prof. Eyup Dogan, and anonymous referees of the journal for their
extremely useful suggestions for the improvement of this paper. The
usual disclaimers apply.
Availability of data and materials The datasets generated and/or ana-
lyzed during the current study are available in the World Development
Indicators (2020). Links: https://databank.worldbank.org/source/world-
development-indicators#.
Author contribution All the authors contributed to the study conception
and design. Malayaranjan Sahoo and Narayan Sethi performed material
preparation and data collection, and Malayaranjan Sahoo performed anal-
ysis. Both the authors wrote the firstdraft of the manuscript; and Narayan
Sethi commented on previous versions of the manuscript. All authors read
and approved the final manuscript.
Declarations
Ethics approval and consent to participate Not applicable
Consent for publication Not applicable
Competing interests The authors declare no competing interests.
Appendix
Table 10 Sample countries considered for the study
Argentina Congo Republic Kenya Peru
Bangladesh Colombia Sri Lanka Philippines
Bolivia Costa Rica Mexico Paraguay
Brazil Dominican Republic Mozambique El Salvador
Botswana Ghana Malaysia Togo
Chile Haiti Nigeria Thailand
China Indonesia Nicaragua Tunisia
Cote d’Ivoire India Pakistan Turkey
Cameroon Jordan Panama Tanzania
Environ Sci Pollut Res
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