Common Correlated Effects Mean Group Research Articles

Revisiting the Environmental Kuznets Curve Hypothesis in the MENA Region: The Roles of International Tourist Arrivals, Energy Consumption and Trade Openness

This paper employed advanced panel methods to examine the effects of international tourist arrivals on CO2 emissions in the Middle East and North Africa (MENA) region over the period of 1995–2018. To analyze the predictive power of tourist arrivals for CO2 emissions, the panel Granger non-causality test was employed. Employing the common correlated effects mean group estimator showed that tourist arrival reduces CO2 emissions, while energy consumption and trade openness are the main contributors of CO2 emissions. Results also showed that although first-generation estimators confirmed the Environmental Kuznets Curve (EKC) hypothesis, according to the CCE-MG estimator, an inverted U-shaped association between economic progress and CO2 emissions does not exist. Furthermore, the null hypothesis of non-Granger causality from tourist arrivals to CO2 emissions was rejected. The findings suggest taking a more sustainable approach to tourism development and energy conservation in the long run.

PURCHASING POWER PARITY THEORY: A CROSS-SECTIONAL DEPENDENCE PANEL DATA ANALYSIS OF SIXTEEN DEVELOPED COUNTRIES

This paper examined the purchasing power parity (PPP) theory for a group of sixteen developed countries using powerful statistical panel data methods that account for cross-sectional dependence. The paper utilized the Pesaran panel unit root test, the cointegration test of Westerlund, the Augmented Mean Group (AMG) estimator, the Common Correlated Effect Mean Group (CCEMG) estimator, and the panel data Granger non-causality test of Dumitricus and Hurlin to analyze the causal relationships among the variables involved in the study. The tests showed that the PPP theory occurs in this group of countries. Furthermore, outcomes of the long-run estimation revealed both depreciation and appreciation of the nominal exchange rates. Apart from providing important policy implications on the results obtained, this paper made another significant contribution by extending the linear AMG and CCEMG estimators into nonlinear estimators and further used them in examining the long-run PPP theory.

Evaluating the role of renewable energy and technology innovations in lowering CO2 emission: a wavelet coherence approach.

Environmental sustainability is one of the most critical issues that require efficient environmental and economic policies in modern times. Advancements in renewables and green technologies contribute significantly to sustained long-term development without affecting environmental quality. Several studies focus on the association of carbon dioxide emissions (CO2e) with economic variables. However, they ignored the impact of technological innovations and renewable energy consumption on CO2e in developed countries. Therefore, this study examines the relationship between CO2e, energy consumption, gross domestic product (GDP), renewable energy consumption, and technology innovations in G-7 countries by employing cross-sectionally augmented autoregressive distributed (CS-ARDL) lag and wavelet coherence techniques during 1990-2020. The results depict that GDP and renewable energy consumption are inversely related to CO2e. A 1% increase in CO2e will decrease GDP and renewable energy consumption by 0.459 and 0.172% in the long run and by 0.471 and 0.183% in the short run in G7 countries. Technology innovations negatively impact CO2e in the short run while positively influencing it in the long run. Considering the advancements in green technologies in different energy-dependent and manufacturing sectors is crucial for a sustainable environment in the long run. Such initiatives ensure the effective use of energy sources by limiting CO2e in the atmosphere. Moreover, the dynamic common correlated effects mean group model confirms the reliability and effectiveness of the CS-ARDL. The wavelet coherence approach revealed a causality relation between CO2e and technology innovation in Italy, Japan, the UK, and the USA during the study period.

The prominence of fossil energy resources in ecological sustainability of BRICS: The key role of institutional worth

Introduction: The relationship between fossil fuel energy resources and environmental degradation has been quantified from theoretical and empirical perspectives. However, none of these studies has considered the conditioning role played by institutions in the nexus, especially for BRICS countries. Therefore, the current study examines the moderating role of institutional quality using annual data from 1996–2018 for BRICS countries.Method: The study employs the novel cross-sectional augmented autoregressive distributed lags (CS-ARDL) estimator, robust to cross-sectional dependency and heterogeneity, for short-run and long-run estimation. Moreover, augmented mean group (AMG) and common correlated effects mean group (CCEMG) estimators are used for robustness analysis.Results: The finding reveals that fossil fuel energy resources, globalization, and growth significantly positively affect the ecological footprint, whereas the institutional quality significantly negatively effects the ecological footprint in BRICS countries. Furthermore, the interaction term of institutional quality with fossil fuel energy resources significantly negatively moderates the fossil fuel energy-EFP nexus. Finally, we performed the Dumitrescu and Hurlin (DH) panel causality analysis to determine the causality direction between the variables. Except for intuitions quality and growth, we found a unidirectional causality for explanatory variables and EFP.Discussion: The study provides novel empirical evidence and recommends the importance of institutional quality for environmental sustainability.

How can environmental degradation and income disparities influence national health: an eye bird view on China's provinces.

Growing socio-economic disparity is a global issue that could disturb community health. Numerous case studies have examined the health influences of income disparities as well as the patterns that implicate those disparities. Therefore, this study attempts to examine the core determinants of mortality rate, which are environmental degradation, green energy, health expenditures, and technology (ICT) for the 25 provinces of China over the period of 2005-2020. This study uses a series of estimators to investigate the preferred objectives in which CS-ARDL and common correlated effect mean group (CCE-MG). Estimated results show the significant contribution of environmental deterioration and income inequality to the mortality rate. Furthermore, health expenditures, ICT, and green energy significantly reduce the mortality rate. Similarly, the moderate effect of income inequality on health expenditure, green energy, and ICT significantly reduces the mortality rate in selected provinces of China. More interestingly, the current study suggests policy implications to reduce the rising trend of mortality rate.

Renewable energy consumption and Inclusive Growth: Evidence from 20 African countries

In Africa, the need for energy is growing. When it comes to renewable energy resources in Africa zone, it is unequivocally needed. Many African countries are experiencing development therefore they are shifting to the use of renewable energy. In that view, this study aims to discover the potential impact of renewable energy consumption on inclusive growth in 20 African countries for a period covering 1997 To 2015. To tackle this estimation technique namely Pesaran’s (2007) [1] CD test, Pesaran’s (2015) [2] LM test and Breusch and Pagan’s (1980) [3] LM test, slope homogeneity test, Average Mean Group (AMG), Common Correlated Effects Mean Group (CCEMG) and pairwise granger were employed. Concentration on inclusive growth contributes greatly to the economy size and ensures employment opportunity creation for the society in a different segment, the result of the study indicates that renewable energy consumption significantly impacted inclusive growth in n the selected Africa Countries. Consequently, if countries like Africa prosper in switching to renewable energy, unbelievable gains could be captured in terms of inclusive growth.

Exploring the heterogeneous effects of technological innovations on environmental sustainability: Do structural change, environmental policy, and biofuel energy matter for G7 economies?

The global economy has realized that global warming issues should not be treated with levity. Instead, conscientious and meticulous measures must be taken to address the unwavering ravaging impacts of ecological complications of which technological innovations stand out. Despite the emphasis on technology as a viable pathway to zero emissions by the recent 26th Conference of the Parties (COP26), the feasibility of achieving the global target remains vogue from the empirical perspective. Hence, this study presents the first empirically based evidence on the heterogeneous effects of technological innovations on environmental sustainability in Group of Seven (G7) countries from 1995 to 2019. For robust policy insights, the study controls for the functional roles of structural change, environmental policy, biofuel energy, and trade openness in verifying the empirical model. The empirical evidence relies on second-generation estimators comprising cross-sectional autoregressive distributed lag (CS-ARDL), augmented mean group (AMG), common correlated effects mean group (CCEMG), and panel method of moment quantile regression (PMMQR) that are robust for the issues of slope heterogeneity and cross-sectional dependence. The main findings show that the various components of technological innovations, structural change, environmental policy, and biofuel energy support environmental sustainability by exerting statistically adverse effects on CO2 emissions. In contrast, trade openness appears as a deterrent to sustainable environment by statistically and positively impacting CO2 emissions. Besides, the findings reveal bidirectional and unidirectional causality pathways in the nexuses investigated for G7. Based on the empirical fallouts, viable policy insights that lead to achieving the net zero emissions target are formulated.

Do globalization and nuclear energy intensify the environmental costs in top nuclear energy-consuming countries?

Nuclear energy is considered an effective alternative to ensure global energy safety, and it has recently started to be promoted as a climate change mitigation solution to achieve low-carbon energy transition targets. Considering this view, this study aims to assess the environmental cost reduction by using nuclear energy efficiency and technological innovation from the prospects of the globalization process. Therefore, the relationship among carbon emissions, nuclear energy, globalization, and technological innovation was assessed in the top ten nuclear energy-consuming countries from 1990 to 2017 while controlling for economic growth and renewable energy. This study applied Common Correlated Effects Mean Group (CCEMG), Augmented Mean Group (AMG), and Dumitrescu-Hurlin causality techniques for model estimation that solves the problem of cross-sectional dependence and slope heterogeneity. The empirical results indicated that nuclear energy and technological innovation diminish environmental costs by reducing carbon emissions. However, globalization increases environmental costs by releasing more carbon emissions into the atmosphere. Moreover, bidirectional causality exists among nuclear energy, renewable energy, and carbon emissions. Consequently, the highest nuclear energy-consuming countries must utilize nuclear energy efficiency to control environmental costs and a cost-effective path to a low-carbon economy. Finally, this perspective intended to appeal to policymakers to do a better job of substantiating their decisions.

The dynamic impact of energy productivity and economic growth on environmental sustainability in South European countries

In the wake of global warming, the world is in an ecological state of disarray. Consequently, governments across the globe are committing to achieving low temperatures with a target of 1.5 °C, of which South European countries play a key role. This study aims to examine the effects of energy productivity (EP), economic growth (GDP), and globalization (GLO) on CO2 emissions of Cyprus, Spain, Portugal, Italy, Greece, and Malta (Southern European countries). The study covers the time from 1990 to 2018. Unlike earlier studies, the current analysis considers EP a significant factor in determining CO2 emissions in Southern European countries. Southern European countries primarily represent a group of emerging economies, but it is relatively ignored in empirical environment literature. This study is the first to reveal a newly second-generation connection among EP, GDP, GLO, and CO2 emissions in the Southern European countries by using the novel method of panel cointegration of Westerlund cointegration, Pedroni cointegration, augmented mean group (AMG), common correlated effects mean group (CCEMG), and followed by Dumitrescu–Hurlin causality tests. The empirical results suggest that the variables' effects are cointegrated, and EP reduces CO2 emissions while GDP, and GLO increase CO2 emissions in the South European countries. Furthermore, findings from the Dumitrescu Hurlin panel causality test suggest that any reductions in EP would have a positive impact on the extent of carbon emissions. On the basis of these empirical findings, this study suggests that policy administrators of the South European countries should consider the energy efficiency impact among the variables in setting their environmental, growth, and energy policies.

Do renewable energy consumption and financial development contribute to environmental quality in MINT nations? Implications for sustainable development

Maintaining a balance between the well-being of the economy and the environment has become a top priority for governments globally. In the contemporary age, world economies, particularly the emerging ones like MINT nations, highlight the need for eco-friendly economic expansion. The MINT nations are thriving economically but are having difficulty reducing their Ecological footprint (EF). This paper aimed to determine if factors such as population density, renewable energy, foreign direct investment, economic growth, and financial development impact ecological footprint in the MINT countries between 1990 and 2018. The study applied ample advanced econometrics such as method of moments quantile regression (MMQR), augmented mean group (AMG) and Common Correlated Effects Mean Group (CCEMG). The overall results indicated that the variables are integrated at the first difference and are cointegrated. The AMG, CCEMG and MMQR results reveal that economic growth deteriorates ecological well-being by promoting the EF while foreign direct investment, population density and renewable energy assists in enhancing it by mitigating the EF in the MINT nations. In addition, financial development does not exert a significant effect on EF. The Dumitrescu Hurlin Panel Causality results show unidirectional causality from economic growth, financial development, population density, and renewable energy to EF. Based on these results policy recommendations are suggested.

Economic Growth, Energy Mix, and Tourism-Induced EKC Hypothesis: Evidence from Top Ten Tourist Destinations

The tourism sector makes a sizable contribution to a country’s gross domestic product, increasing employment opportunities, foreign currency earnings, and economic diversification strategies. This paper uses the Environmental Kuznets Curve (EKC) model to analyze the effects of tourism on the environment in the world’s top 10 tourist countries from 1972 to 2021. Panel cointegration and second-generation unit root tests are suggested due to the presence of cross-sectional dependence and slope heterogeneity. A cross-sectional-autoregressive-distributed lag (CS-ARDL) model is applied to evaluate the marginal influence of environmental variables other than tourism on carbon dioxide (CO2) emissions. These variables include fossil fuels, renewable energy, and nuclear energy. For the purpose of testing robustness, both the augmented mean group (AMG) and the common correlated effects mean group (CCEMG) estimators are employed. The CS-ARDL supports the EKC hypothesis in the short run and long run, but it is not significant in the short run. The existence of EKC demonstrates that rising income leads to fewer CO2 emissions. All forms of environmental degradation can be accelerated by using fossil fuels. The results of this study indicate that CO2 emissions can be reduced by using renewable energy and nuclear energy. A rise in tourism activity has a positive impact on environmental quality. The best-attended tourist spots around the globe are those that, in the long run, implement clean energy-related technology and promote ecotourism.

Role of country risks and renewable energy consumption on environmental quality: Evidence from MINT countries

This study focuses on uncovering the effect of country risks and renewable energy consumption on environmental quality. In this context, the study examines Mexico, Indonesia, Nigeria, and Turkey (MINT) nations; takes economic growth, trade openness, and urbanization into account; includes data from 1990 to 2018; applies cross-sectional autoregressive distributed lag (CS-ARDL) as the main model while common correlated effects mean group (CCEMG) and augmented mean group (AMG) for robustness checks. The empirical results show that (i) economic growth, political risk, urbanization, and trade openness contribute to an increase in ecological footprint; (ii) economic and financial risks as well as renewable energy use have a positive influence on environmental quality; (iii) a unidirectional causality exists from economic risk, financial risk, political risk, economic growth, urbanization, and trade openness to the ecological footprint: (iv) the validity of the EKC hypothesis for the MINT economies is verified; (v) the robustness of CS-ARDL results are validated by CCEMG and AMG approaches. Based on these results, policymakers should promote a sustainable environment to lessen the ecological footprint. Additionally, governments should firmly support investments in green technology as well as economic and financial stability to boost energy efficiency and promote the adoption and usage of energy-saving products.

Panel Estimation of the Environmental Kuznets Curve for CO2 Emissions and Ecological Footprint: Environmental Sustainability in Developing Countries

Abstract Research background: The relationship between the economy and the environment is one of the most frequently encountered issues recently. Today the issue of environmental sustainability is one of the problems faced by countries. Purpose: This study, it is aimed at investigating the relationship between economic and environmental variables. Research methodology: The existence of the environmental Kuznets curve theory, in other words, the inverted U-connection between per capita carbon dioxide emissions, per capita ecological footprint, and per capita GDP in the examples of 10 developing countries is examined. We analyzed annual balanced panel data covering the period 1992–2014 for an inverted U-link between carbon dioxide emissions and ecological footprint and per capita GDP. Westerlund’s cointegration test was applied as a cointegration test. The Common Correlated Effects Mean Group (CCEMG) and Augment Mean Group (AMG) estimator methods were applied for long-term parameter estimation. The Dumitrescu and Hurlin causality test was applied to determine the causal connections. Results: As a result of the study, a positive and significant effect of electricity consumption on carbon dioxide emission was determined in the long term in the model where the ecological footprint is the dependent variable. In the environmental Kuznets curve hypothesis, an inverted U-shaped relationship was determined. That is, the results confirming the existence of the environmental Kuznets curve have been determined. Finally, bidirectional causal links between carbon emissions and economic growth, between carbon dioxide emissions and the square of economic growth, and between carbon dioxide emissions and electricity consumption; It is observed between the ecological footprint and economic growth, between the ecological footprint and the square of economic growth, and between the ecological footprint and electricity consumption. It is expected that this article will make a significant contribution to the literature with the important results obtained by using both an ecological footprint and carbon dioxide emission as dependent variables. Novelty: In this study, unlike other studies, two models were created with both CO2 emissions and the ecological footprint data as environmental variables.

The roles of energy, natural resources, agriculture and regional integration on CO2 emissions in selected countries of ASEAN: does political constraint matter?

This paper empirically examines the effects of energy, natural resources, agriculture, political constraint and regional integration on CO2 emissions in four ASEAN (Association of Southeast Asian Nations) countries of Cambodia, Malaysia, Indonesia and Thailand. We distinguish between renewable and fossil fuel energy consumption to see their individual impacts on CO2 emissions. The study employed a panel data from 1990 to 2019 derived from sources such as World Development Indicators, which were then analysed using Common-Correlated Effect Mean Group (CCEMG) and Augmented Mean Group (AMG) estimates. The findings show that renewable energy consumption has a negative impact on CO2 emissions while fossil fuel energy degrades the environment. The role of natural resources was found to be favourable for environmental quality with the impact of agriculture being found to be detrimental. For regional trade integration, its influence was not significant enough to offset CO2 emission. Furthermore, we discovered that political constraint induces CO2 emission. Based on the result, it is recommended that the selected ASEAN countries promote the use of renewable energy and clean technologies in their manufacturing processes, conserve natural resources, adopt eco-friendly political policies and intensify regional integration to accelerate the achievement of the SDGs.

The role of environmental taxes and stringent environmental policies in attaining the environmental quality: Evidence from OECD and non-OECD countries

Numerous economies focus on attaining a clean environment by applying environmental policies and green technology. This study examined the impact of GDP growth, non-renewable, technological change, environmental tax, and strict regulations on an ecological footprint for the Organization for Economic Cooperation and Development (OECD) and Non-OECD (not members of OECD) economies from 1990 to 2015. This analysis applied the Cross-Sectionally Augmented Auto-Regressive Distributed Lag (CS-ARDL) to identify the role of GDP, and environmental taxes, with selected control factors on ecological degradation. These CS-ARDL techniques resolve the issues of slope heterogeneity, endogeneity, and cross-sectional dependence. For robustness, this study used Augmented Mean Group (AMG), and Common Correlated Effect Mean Group (CCEMG) tests to check the long-run association between variables. The empirical findings of CS-ARDL have confirmed that environmental taxes, stringent environmental policies, and ecological innovation significantly improve environmental quality in OECD compared to the Non-OECD countries. The D-H panel Granger causality test results show the unidirectional causality moving from environmental tax to ecological footprint, which referred to the “green dividend” hypothesis of minimizing environmental degradation. Using AMG and CCEMG tests for Robustness checks indicates that environmental taxes and tight environmental policy can effectively improve the environment’s quality in both regions. Hence, environmental protection awareness is forcing policymakers to minimize the impact of environmental degradation to achieve sustainable growth.

G20 Ülkeleri İçin Feldstein-Horioka Bulmacasının Geçerliliğinin Panel Veri Yöntemi ile Sınanması

Yurt içi ve yurt dışı tasarruflar, gelişmiş veya gelişmekte olan ülkelerde, ekonomik büyümenin ve kalkınmanın temeli olarak görülmektedir. Özellikle 1980’lerden bu yana artan sermaye hareketliliği ile birlikte bu alanda birçok çalışma yapılmıştır. Son dönemlerde sermaye hareketliliği, yurt içi tasarruf ve yatırım arasında güçlü bir ilişkinin varlığını varsayan Feldstein-Horioka (FH) bulmacası temelinde sıkça tartışılmaktadır. Bu çalışmanın amacı 1995-2020 döneminde G20 ülkeleri için, Feldstein-Horioka bulmacasının geçerliliğini incelemektir. Çalışmada kullanılan yurt içi tasarrufların ve yurt içi yatırımların gayri safi yurt içi hasılaya oranı değişkenleri, Dünya Bankasının Gelişmişlik Göstergeleri veri tabanından elde edilmiştir. Bu çalışmada, mevcut literatürün metodolojik sorunları da göz önüne alınarak yenilikçi veri analitik prosedürleri kullanılmıştır. Bu bağlamda, mevcut çalışma, panel verilerin yatay kesit bağımlılığını ve heterojen yapısını dikkate almaktadır. Genişletilmiş Ortalama Grup (AMG) tahmincisi ve Ortak Korelasyonlu Etkiler Ortalama Grubu (CCEMG) tahmin edicilerinden elde edilen FH panel katsayıları sırasıyla 0,261 ve 0,301'dir. Genel sonuçlar, FH bulmacasının G20 ülkeleri için geçerli olmadığını göstermektedir. Bu çalışma, tasarruf ve yatırım ilişkisi temelinde gelecekteki çalışmalara yönelik önemli politika ve uygulama çıkarımları sunmaktadır.

An investigation on the role of electric vehicles in alleviating environmental pollution: evidence from five leading economies.

The relationship between battery electric vehicles (BEV) and carbon dioxide emission (CO2) has significant environmental outcomes. Notwithstanding, battery electric vehicles have not been extensively explored through econometric approach. For countries to meet their net zero targets, it is crucial to consider the role of battery electric vehicles, renewable energy consumption, and CO2. As a result, it is critical to scrutinize a variety of variables that contribute to a sustainable future. This study therefore examines the dynamic correlation between BEV, gross domestic product (GDP), urbanization (URB), renewable energy consumption (REC), population (POP), and CO2 in five leading countries (the United States of America (USA), China, France, Germany, and Norway) using panel data from 2010 to 2020. The study adopted the Westerlund cointegration method to ascertain the long-term nexus among the series. The cross-sectionally augmented autoregressive distributed lag CS-ARDL technique is adopted to evaluate the variables long-run elasticity. The study applied the common correlated effect mean group (CCEMG) and augmented mean group (AMG) approach to ascertain the robustness of the long-run relationships among the variables. Dumitrescu and Hurlin’s panel causality analysis determines the extent of the significant causality linkage. The results demonstrate that increased economic growth, urbanization, and population growth accelerate carbon emissions and environmental depletion. However, BEVs were found to be more energy efficient and the adoption of renewable energy through the manufacturing and battery production process would reduce CO2 emission especially in China and the USA. Finally, the research proposed several policy implications for policy and decision-makers in the five leading countries for combating climate change and increasing productivity in the electric vehicle market and renewable energy consumption.

Nexus between natural resources, globalization and ecological sustainability in resource-rich countries: Dynamic role of green technology and environmental regulation

Investigating natural resources and environmental sustainability concerns has remained imperative policy agenda of legislators. Therefore, this study investigates the nexus between natural resources, green technology, environmental regulations, and ecological footprints (EFP) in resource-rich economies from 1990 to 2018. Using cross-sectional augmented autoregressive distributed lags (CS-ARDL) model, the findings confirm that natural resources and globalization are primarily responsible for increasing EFP. In contrast, green technologies and environmental regulations reduce EFP by offering efficient technologies and adopting sustainable economic practices. Similar evidence is provided in short-run estimations; however, their coefficient magnitudes are relatively lower. These findings are endorsed by Augmented Mean Group and Common Correlated Effect Mean Group estimators and imply that eco-friendly technologies and stringent environmental policies encourage green transformation, eventually reducing EFP. The negative influence of natural resource depletion would be minimized by integrating green technologies into the economic process.

Heterogeneous effects of renewable energy and structural change on environmental pollution in Africa: Do natural resources and environmental technologies reduce pressure on the environment?

The global economy today faces the most devastating effects of global warming than what is evident in the pre-industrial age. Consequently, governments across the globe are making diligent efforts towards halting this undesirable menace through many avenues in which structural change stands out. Hence, this study examines the impacts of structural change, natural resource dependence, environmental technology, and renewable energy in selected five top carbon-emitting African countries, Algeria, Egypt, Morocco, Nigeria, and South Africa, from 1990 to 2019. The study employs second-generation estimators comprising cross-sectional auto regressive distributive lag (CS-ARDL), common correlated effects mean group (CCEMG), augmented mean group (AMG), and quantile regression (QR). The choice of the second-generation estimators was motivated by the presence of cross-sectional dependence and slope heterogeneity in the model leading to the adoption of the Westerlund cointegration test for the long-run evaluation. The empirical results based on CS-ARDL are presented thus. The indicators of structural change significantly reduce carbon emissions. Similarly, environmental technology and renewable energy mitigate the surge in carbon emissions. In contrast, natural resource dependence induces a substantial increase in carbon emissions. Besides, the findings are robust based on the outcomes reported from common correlated mean group (CCEMG), augmented mean group (AMG), and QR tests. Moreover, the causality from the Dumitrescu Hurlin test provides empirically backed the nexus based on unidirectional and bidirectional causalities. Promoting service-led structural change, environmental technology practices, and investment in renewable energy are among the prominent policy insights.

Impact of economic complexity index, globalization, and nuclear energy consumption on ecological footprint: First insights in OECD context

Energy systems around the world must take the opportunity to use low-carbon energy sources and technologies to reduce the global ecological footprint. While nuclear energy has always been very controversial, particularly among environmentalists, some have begun to recommend that nuclear energy be revisited as a source of clean energy to prevent climate change. Therefore, this work aims to estimate the effect of nuclear energy, the economic complexity index, and globalization on the ecological footprints of OECD countries within a multivariate context for the period of 1990–2019. This study examined Cross-Sectional Augmented Autoregressive Distributed Lag, Common Correlated Effects Mean Group, and Augmented Mean Group for model estimations robust to cross-country dependencies and heterogeneity. The empirical results reveal that high scores on the economic complexity index increase the pressure on the ecological footprints of OECD countries. These findings demonstrate the critical importance of nuclear energy production for ecologically sustainable development in OECD nations and act as a useful benchmark for environmental security in other countries throughout the world.