Abstract
The present study assesses the effect of public-private partnerships in energy and financial development on Brazil's ecological footprint and also takes into account the role of renewable energy and economic growth using data spanning from 1983 to 2017. The study utilized several techniques including autoregressive distributive lag (ARDL) and dynamic ordinary least square (DOLS) to examine the relationship between ecological footprint and the determinants, while the gradual shift causality test was utilized to capture the causal linkage between the series in the presence of a single structural break. The outcomes of the Maki co-integration test revealed evidence of a long-run association among the variables of interest. Furthermore, the results of the ARDL and DOLS tests revealed that economic growth and public and private investment in energy increase environmental degradation, while it is mitigated by both renewable energy and financial development. Moreover, the gradual shift causality test revealed a bidirectional causal linkage between ecological footprint and economic growth. The present study recommends the establishment of a forum that will foster public and private partnerships to enhance communication, which will promote collaboration on new initiatives involving green technological innovations.
Highlights
Gradual shift causality test was utilized to capture the causal linkage between the series in the presence of structural break
Questions still stayed about the role of public-private investment in energy, GDP growth, renewable energy use, and financial development in mitigating climate change
The above motives point to the objective of studying the dynamic effect of public-private investment in energy, financial development, economic growth and renewable energy on the ecological footprint (EP) in Brazil utilizing current econometric techniques
Summary
The results of the ARDL, FMOLS, DOLS, and CCR tests revealed that economic growth and public and private investment in energy increase environmental degradation while both renewable energy and financial development mitigates it. The EP has been explored together with other economic indicators such as financial development, renewable energy, and economic growth (Kirikaleli et al 2020; Pata & Yilanci, 2020; Saud et al 2020; Ahmed et al 2021; Ahmed et al 2019; Kassouri and Altıntaş, 2020; Langnel & Amegavi, 2020; Ansari et al 2020). Questions still stayed about the role of public-private investment in energy, GDP growth, renewable energy use, and financial development in mitigating climate change. The above motives point to the objective of studying the dynamic effect of public-private investment in energy, financial development, economic growth and renewable energy on the EP in Brazil utilizing current econometric techniques.
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