Determining the factors of ecological footprints in South Asian countries: exploring the role of renewable energy and forest area.

Abstract

This work investigates the associations of ecological footprints (EF), forest area (FOR), renewable energy (RE), non-renewable energy (EU), financial development (FD), and agricultural value add (AGR) in South Asian economies. The annual data of 1990-2018 is used for analysis. This work uses robust second-generation econometric methodologies. After the validation of cross-sectional dependence (CD), the stationarity test shows stationarity at the level and first difference. The co-integration test shows strong co-integration among the panel data, and the results of cross-sectional autoregressive distributed lag (CS-ARDL) show that renewable energy, forest area, and FD are environmentally friendly in Pakistan, Bangladesh, Sri Lanka, and India. The use and promotion of renewable energy in the agricultural sector are suggested. Moreover, agricultural policies need to revise in these countries. FD and forest areas are helpful to mitigate environmental degradation. Therefore, the preservation of forest areas is compulsory for South Asian countries.