IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i12p5051-d1414281.html
   My bibliography  Save this article

The Symmetric Effect of Financial Development, Human Capital and Urbanization on Ecological Footprint: Insights from BRICST Economies

Author

Listed:
  • Abdul Majeed

    (Business School, Huanggang Normal University, Huanggang 438000, China)

  • Juan Wang

    (Beijing Office of Shanxi Provincial People’s Government, Beijing 100000, China)

  • Yewang Zhou

    (Business School, Huanggang Normal University, Huanggang 438000, China)

  • Muniba

    (Business School, University of International Business and Economics, Beijing 100029, China)

Abstract

Environmental degradation is a serious concern and its prevention strategies have become a central topic worldwide. It is widely accepted that improving environmental quality is essential for advancing sustainable development and societal well-being. From this perspective, the present research employed panel data from 1990 to 2022 from BRICST economies to assess the effects of financial development, human capital, urban population, energy consumption, and economic growth on environmental quality regarding ecological footprint. This study employs second-generation empirical techniques such as CIPS and CADF unit root tests, Westerlund bootstrap cointegration, and DFE/MG/PMG-ARDL models to examine the connections among the studied variables. The empirical findings of this study uncover that in the BRICST countries, environmental quality is exacerbated by human capital, urban population, energy consumption, and economic growth. On the other hand, financial development and GDP 2 help improve environmental quality. Additionally, the interaction of the term financial development results with the terms human capital and urban population has a negative effect and reduces ecological footprint by improving environmental quality. From the policy perspective, the selected countries must implement policies that promote equitable financial resources, plan sustainable urbanization to promote compact cities and green infrastructure, and invest in green energy to address the adverse environmental consequences in BRICST economies.

Suggested Citation

  • Abdul Majeed & Juan Wang & Yewang Zhou & Muniba, 2024. "The Symmetric Effect of Financial Development, Human Capital and Urbanization on Ecological Footprint: Insights from BRICST Economies," Sustainability, MDPI, vol. 16(12), pages 1-25, June.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:12:p:5051-:d:1414281
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/12/5051/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/12/5051/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gour Gobinda Goswami & Sadaquat Junayed, 2006. "Pooled Mean Group Estimation of the Bilateral Trade Balance Equation: USA vis-a-vis her Trading Partners," International Review of Applied Economics, Taylor & Francis Journals, vol. 20(4), pages 515-526.
    2. Majeed, Abdul & Wang, Lijun & Zhang, Xiaohui & Muniba, & Kirikkaleli, Dervis, 2021. "Modeling the dynamic links among natural resources, economic globalization, disaggregated energy consumption, and environmental quality: Fresh evidence from GCC economies," Resources Policy, Elsevier, vol. 73(C).
    3. Zhang, Rongxin & Aljumah, Ahmad Ibrahim & Ghardallou, Wafa & Li, Zeyun & Li, Jinhua & Cifuentes-Faura, Javier, 2023. "How economic development promotes the sustainability targets? Role of natural resources utilization," Resources Policy, Elsevier, vol. 85(PA).
    4. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    5. Abdul Haseeb & Enjun Xia & Shah Saud & Muhammad Usman & Muhammad Umer Quddoos, 2023. "Unveiling the liaison between human capital, trade openness, and environmental sustainability for BRICS economies: Robust panel‐data estimation," Natural Resources Forum, Blackwell Publishing, vol. 47(2), pages 229-256, May.
    6. Westerlund, Joakim & Edgerton, David L., 2007. "A panel bootstrap cointegration test," Economics Letters, Elsevier, vol. 97(3), pages 185-190, December.
    7. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    8. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    9. Olimpia Neagu, 2020. "Economic Complexity and Ecological Footprint: Evidence from the Most Complex Economies in the World," Sustainability, MDPI, vol. 12(21), pages 1-18, October.
    10. Sadorsky, Perry, 2009. "Renewable energy consumption, CO2 emissions and oil prices in the G7 countries," Energy Economics, Elsevier, vol. 31(3), pages 456-462, May.
    11. Yao, Xing & Yasmeen, Rizwana & Hussain, Jamal & Hassan Shah, Wasi Ul, 2021. "The repercussions of financial development and corruption on energy efficiency and ecological footprint: Evidence from BRICS and next 11 countries," Energy, Elsevier, vol. 223(C).
    12. Liu, Xuemei & Yuan, Shuhan & Yu, Haoran & Liu, Zheng, 2023. "How ecological policy stringency moderates the influence of industrial innovation on environmental sustainability: The role of renewable energy transition in BRICST countries," Renewable Energy, Elsevier, vol. 207(C), pages 194-204.
    13. Wu Xiaoman & Abdul Majeed & Dinara G. Vasbieva & Claire Emilienne Wati Yameogo & Nazim Hussain, 2021. "Natural resources abundance, economic globalization, and carbon emissions: Advancing sustainable development agenda," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(5), pages 1037-1048, September.
    14. Yang Chen & Chien-Chiang Lee & Ming Chen, 2022. "Ecological footprint, human capital, and urbanization," Energy & Environment, , vol. 33(3), pages 487-510, May.
    15. Ibrahim, Muazu & Sare, Yakubu Awudu, 2018. "Determinants of financial development in Africa: How robust is the interactive effect of trade openness and human capital?," Economic Analysis and Policy, Elsevier, vol. 60(C), pages 18-26.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aladejare, Samson Adeniyi, 2022. "Natural resource rents, globalisation and environmental degradation: New insight from 5 richest African economies," Resources Policy, Elsevier, vol. 78(C).
    2. Degirmenci, Tunahan & Yavuz, Hakan, 2024. "Environmental taxes, R&D expenditures and renewable energy consumption in EU countries: Are fiscal instruments effective in the expansion of clean energy?," Energy, Elsevier, vol. 299(C).
    3. Ma, Yechi & Chen, Zhiguo & Shinwari, Riazullah & Khan, Zeeshan, 2021. "Financialization, globalization, and Dutch disease: Is Dutch disease exist for resources rich countries?," Resources Policy, Elsevier, vol. 72(C).
    4. Umut Uzar, 2022. "The connection between freedom of the press and environmental quality: An investigation on emerging market countries," Natural Resources Forum, Blackwell Publishing, vol. 46(1), pages 21-38, February.
    5. Yilmaz Bayar & Mehmet Hilmi Ozkaya & Laura Herta & Marius Dan Gavriletea, 2021. "Financial Development, Financial Inclusion and Primary Energy Use: Evidence from the European Union Transition Economies," Energies, MDPI, vol. 14(12), pages 1-14, June.
    6. Appiah, Michael & Li, Mingxing & Sehrish, Saba & Abaji, Emad Eddin, 2023. "Investigating the connections between innovation, natural resource extraction, and environmental pollution in OECD nations; examining the role of capital formation," Resources Policy, Elsevier, vol. 81(C).
    7. Muhammed BENLI, 2020. "The effect of external debt on long run economic growth in developing economies: Evidence from heterogeneous panel data models with cross sectional dependency," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(624), A), pages 127-138, Autumn.
    8. Ahmad, Mahmood & Ahmed, Zahoor & Khan, Sana Akbar & Alvarado, Rafael, 2023. "Towards environmental sustainability in E−7 countries: Assessing the roles of natural resources, economic growth, country risk, and energy transition," Resources Policy, Elsevier, vol. 82(C).
    9. Ugur Korkut Pata & Banu Tanriover, 2023. "Is the Load Capacity Curve Hypothesis Valid for the Top Ten Tourism Destinations?," Sustainability, MDPI, vol. 15(2), pages 1-15, January.
    10. Badeeb, Ramez Abubakr & Wang, Bo & Zhao, Jun & Khan, Zeeshan & Uktamov, Khusniddin Fakhriddinovich & Zhang, Changyong, 2023. "Natural resources extraction and financial inclusion: Linear and non-linear effect of natural resources on financial sector," Resources Policy, Elsevier, vol. 85(PA).
    11. Li, Tianyu & Umar, Muhammad & Mirza, Nawazish & Yue, Xiao-Guang, 2023. "Green financing and resources utilization: A story of N-11 economies in the climate change era," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1174-1184.
    12. Yilmaz Bayar & Marius Dan Gavriletea & Mirela Oana Pintea & Ioana Cristina Sechel, 2021. "Impact of Environment, Life Expectancy and Real GDP per Capita on Health Expenditures: Evidence from the EU Member States," IJERPH, MDPI, vol. 18(24), pages 1-14, December.
    13. Umut Uzar, 2024. "Free Speech, Green Power: The Impact of Freedom of Expression on Renewable Energy," Sustainability, MDPI, vol. 16(19), pages 1-21, October.
    14. Xu, Haitao & Yang, Chengying & Li, Xuetao & Liu, Ruiyu & Zhang, Yonghong, 2024. "How do fintech, digitalization, green technologies influence sustainable environment in CIVETS nations? An evidence from CUP FM and CUP BC approaches," Resources Policy, Elsevier, vol. 92(C).
    15. Aydin, Mucahit & Erdem, Azad, 2024. "Analyzing the impact of resource productivity, energy productivity, and renewable energy consumption on environmental quality in EU countries: The moderating role of productivity," Resources Policy, Elsevier, vol. 89(C).
    16. Feng Zhao & Yinyin Zhang & Majed Alharthi & Muhammad Wasif Zafar, 2022. "Environmental sustainability in developing countries: Understanding the criticality of financial inclusion and globalization," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1823-1837, December.
    17. Murshed, Muntasir & Tanha, Muntaha Masud, 2020. "Oil Price Shocks and Renewable Energy Transition: Empirical evidence from net oil-importing South Asian economies," MPRA Paper 100162, University Library of Munich, Germany.
    18. Yang, Bin & Wu, Qiong & Sharif, Arshian & Uddin, Gazi Salah, 2023. "Non-linear impact of natural resources, green financing, and energy transition on sustainable environment: A way out for common prosperity in NORDIC countries," Resources Policy, Elsevier, vol. 83(C).
    19. Appiah, Michael & Karim, Sitara & Naeem, Muhammad Abubakr & Lucey, Brian M., 2022. "Do institutional affiliation affect the renewable energy-growth nexus in the Sub-Saharan Africa: Evidence from a multi-quantitative approach," Renewable Energy, Elsevier, vol. 191(C), pages 785-795.
    20. Yilmaz Bayar & Djula Borozan & Marius Dan Gavriletea, 2021. "Banking sector stability and economic growth in post‐transition European Union countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 949-961, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:12:p:5051-:d:1414281. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.