Exploring the role of renewable energy, urbanization and structural change for environmental sustainability: Comparative analysis for practical implications

Abstract

Environmental sustainability has gained more importance in recent time to ensure socio-economic sustainability via healthy environment. Ecological footprint has also emerged as the central research area drawing attention of the scholars. However, there appears a gap in pointing out the significant factors that determine ecological footprint. The present investigation explores the relationship between economic complexity, human capital, renewable energy, urbanization, economic development, and ecological footprint in 20 countries divided into two panels (leading ten economic complex and renewable energy-consuming countries). The current study employ's panel data estimators, for instance, fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS) and the canonical cointegrating regression (CCR) long-run estimators to the period from 1980 - 2017. The results suggest that economic complexity, economic development, and urbanization raise the ecological footprint in both panels. Human capital and renewable energy induce ecological footprint, whereas renewable energy increases ecological footprint in the first panel. Based on empirical evidence, the study recommends the governments of these countries promote production processes that are friendlier to the environment and introduce greener technologies in exports for a drastic reduction in environmental pollution.