Ecological footprint, air quality and research and development: The role of agriculture and international trade

Abstract

Abstract With economic development, there is a growing demand for food and manufactured products that put direct pressure on air and soil quality, limiting sustainable development. The Sustainable Development Goals (SDGs) formulated by the United Nations establish 17 objectives that guide public policies within countries. The achievement of the SDG6, SDG7, SDG11, SDG12, SDG14 and SDG15 goals, which are totally or partially related to environmental quality, depends mainly on the ability to generate new processes and industrial products friendly to the environment. Innovation arising from research and development (R&D) can be decisive in mitigating the adverse effects of climate change. The objective of this research is to examine the effect of R&D on environmental degradation as measured by ecological footprint and air quality, including the role of agriculture and trade. The theoretical framework that supports the methodological strategy is the environmental Kuznets curve. To capture the role of geography, we used the World Bank classification of regions. Using second-generation cointegration techniques and panel data for 77 countries during 1996–2016, we found a cointegration relationship between R&D and environmental degradation, agriculture, and trade. The results of the FMOLS model suggest a heterogeneous impact of research and development on environmental degradation. Likewise, our results show that there is bidirectional causality between air quality R&D and between the ecological footprint and R&D. In East Asia and the Pacific region, there is a two-way causality between air quality and R&D, and a one-way causal relationship ranging from the ecological footprint to R&D. In the Middle East and North Africa, we find a one-way causal relationship ranging from the ecological footprint to R&D. Finally, we find that there is one-way causality from R&D to ecological footprint in North America, Europe, and Central Asia. The investigation ends with a call for policymakers to use R&D, agriculture, and trade as mechanisms to mitigate air and soil degradation.