Inclusivity between digital trade, human development, and environmental quality: moderating role of green innovations in BRICS countries

This research investigates the role of digital trade, human development, globalization, and green innovations on ecological footprints (EFP) for BRICS countries. Unlike the earlier studies, this research expands the empirical contribution while examining the moderating effect of green technologies on the relationship between stated explanatory variables and EFP. Initially, we testify the presence of cross-sectional dependence, unit root tests, cointegration, and slope heterogeneity and subsequently apply cross-sectionally augmented autoregressive distributed lags (CS-ARDL) using annual data from 1995 to 2019. The empirical findings exhibit the significance of digital trade, human development, and green technology innovations in complementing low EFP in the long run. However, globalization tends to increase ecological footprints. Moreover, the findings in the short run provide a symmetrical (positive/negative) effect of stated explanatory variables on EFP; however, their marginal impact is lower. Additionally, the moderating effect of green technologies on the relationship between digital trade and EFP and between human development and EFP is significantly negative, supplementing the existing association. Therefore, an inclusive digital and human development policy is imperative to ensure sustainable ecology.