Determinants of the ecological footprint: Role of renewable energy, natural resources, and urbanization

Abstract

In recent years the investigation of ecological footprint and its determinants has remained a hot issue of debate among policy analysts. But some of the important determinants of ecological footprint have not been adequately covered in the literature. The present study explores the relationship between real income, renewable energy, urbanization, natural resource rent, and ecological footprint in BRICS economies. The panel data estimators such as fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) long-run estimators are employed for the period from 1992 to 2016 to yield reliable estimations. Empirical findings document that natural resource rent, renewable energy, and urbanization decrease ecological footprint, implying that they have a positive contribution to environmental quality. Results approve the Environmental Kuznets curve (EKC) for BRICS countries in case the ecological footprint is employed as an indicator of environmental degradation. Based on the empirical results, the study develops important policy implications for BRICS countries to achieve sustainable development targets.