What abates ecological footprint in BRICS-T region? Exploring the influence of renewable energy, non-renewable energy, agriculture, forest area and financial development

Abstract

This study investigates the dynamic nexus between ecological footprint, agriculture value-added, forest area, non-renewable and renewable energy utilization, and financial development in BRICS-T (Brazil, Russia, India, China, South Africa, and Turkey) countries from 1990 to 2018. After confirming the presence of cross-sectional dependency, this study applies second-generation panel unit root, cointegration, long run elasticity, and causality tests. The empirical findings explore that agriculture value-added in BRICS-T consolidates the country's ecological footprint prospects to grow that a 1% influence in agriculture enhances the BRICS-T ecological footprint level by 0.2201%. Moreover, a 1% augmentation in non-renewable energy and financial development leads to produce ecological footprint by 0.5507% and 0.0404%, respectively. While 0.7483% and 0.2248% reduction in ecological footprint is due to a 1% increase in forestry and renewable energy utilization, respectively, implying that these indicators significantly improve environmental quality in the long-run. On the other hand, the causality analysis discovered the subsistence of feedback effect between agriculture, financial development, and ecological footprint. Moreover, a growth hypothesis is observed from forest area, renewable, and non-renewable energy utilization to ecological footprint. Consistent with these findings, policymakers should encourage renewable energy utilization and strengthen the agriculture and financial sector to achieve sustainable development goals (SDGs 2, 7, and 13).