IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i4p1568-d1590924.html
   My bibliography  Save this article

Asymmetric Impacts of Environmental Policy, Financial, and Trade Globalization on Ecological Footprints: Insights from G9 Industrial Nations

Author

Listed:
  • Jianguo Du

    (School of Management, Jiangsu University, Zhenjiang 212100, China)

  • Yasir Rasool

    (School of Management, Jiangsu University, Zhenjiang 212100, China)

  • Umair Kashif

    (School of Finance and Economics, Fuzhou University, Fuzhou 350108, China)

Abstract

This study investigates the effects of financial globalization, trade globalization, and information and communication technology on the ecological footprint in G9 industrial economies (China, the United States, Japan, Germany, India, South Korea, Italy, France, and the United Kingdom) from 2000Q1 to 2018Q4. A distinctive Method of Moments Quantile Regression (MMQR) model was employed to analyze these relationships, and the Bootstrap Quantile Regression (BSQR) model was used to validate the results. The findings reveal that financial globalization (FG), environmental tax (ETAX), and institutional quality (IQ) contribute to environmentally sustainable development by reducing the ecological footprint (ECOFP). In contrast, trade globalization, information and communication technology (ICT), and gross domestic product (GDP) have a significant positive impact on the ecological footprint, leading to increased environmental degradation. The BSQR results corroborate these findings, confirming the roles of financial globalization, institutional quality, environmental tax, trade globalization, information and communication technology, and gross domestic product in shaping the ecological footprint. Based on these results, policymakers in G9 industrial nations should promote financial globalization as a tool to reduce the ecological footprint by encouraging green financing and environmentally sustainable investments. For trade globalization, stricter environmental regulations and sustainable trade practices are essential to mitigate its adverse environmental effects. Also, efforts to minimize the ecological impact of information and communication technology should focus on integrating renewable energy into ICT infrastructure and advancing green technology innovations.

Suggested Citation

  • Jianguo Du & Yasir Rasool & Umair Kashif, 2025. "Asymmetric Impacts of Environmental Policy, Financial, and Trade Globalization on Ecological Footprints: Insights from G9 Industrial Nations," Sustainability, MDPI, vol. 17(4), pages 1-21, February.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:4:p:1568-:d:1590924
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/4/1568/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/4/1568/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Miao, Yang & Razzaq, Asif & Adebayo, Tomiwa Sunday & Awosusi, Abraham Ayobamiji, 2022. "Do renewable energy consumption and financial globalisation contribute to ecological sustainability in newly industrialized countries?," Renewable Energy, Elsevier, vol. 187(C), pages 688-697.
    2. Machado, José A.F. & Santos Silva, J.M.C., 2019. "Quantiles via moments," Journal of Econometrics, Elsevier, vol. 213(1), pages 145-173.
    3. Kilinc-Ata, Nurcan & Proskuryakova, Liliana N., 2024. "The contribution of energy policies to green energy transition in the Asia-Pacific region," Renewable Energy, Elsevier, vol. 237(PC).
    4. Fang, Guochang & Yang, Kun & Tian, Lixin & Ma, Yuting, 2022. "Can environmental tax promote renewable energy consumption? — An empirical study from the typical countries along the Belt and Road," Energy, Elsevier, vol. 260(C).
    5. Zhou, Yuanxiang & Adebayo, Tomiwa Sunday & Yin, Weichuan & Abbas, Shujaat, 2023. "The co-movements among renewable energy, total environmental tax, and ecological footprint in the United Kingdom: Evidence from wavelet local multiple correlation analysis," Energy Economics, Elsevier, vol. 126(C).
    6. Sharma, Rajesh & Sinha, Avik & Kautish, Pradeep, 2021. "Do economic endeavors complement sustainability goals in the emerging economies of South and Southeast Asia?," MPRA Paper 108163, University Library of Munich, Germany, revised 2021.
    7. Zhang, Chuanguo & Mou, Xinjie & Ye, Shuping, 2022. "How do dynamic jumps in global crude oil prices impact China's industrial sector?," Energy, Elsevier, vol. 249(C).
    8. Umair Kashif & Junguo Shi & Snovia Naseem & Shanshan Dou & Zohaib Zahid, 2024. "ICT service exports and CO2 emissions in OECD countries: the moderating effect of regulatory quality," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-17, June.
    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. Khaddage-Soboh, Nada & Safi, Adnan & Faisal Rasheed, Muhammad & Hasnaoui, Amir, 2023. "Examining the role of natural resource rent, environmental regulations, and environmental taxes in sustainable development: Evidence from G-7 economies," Resources Policy, Elsevier, vol. 86(PA).
    2. Fotio, Herve Kaffo & Nchofoung, Tii N. & Asongu, Simplice A., 2022. "Financing renewable energy generation in SSA: Does financial integration matter?," Renewable Energy, Elsevier, vol. 201(P2), pages 47-59.
    3. Halmat Omer & Murad Bein, 2022. "Does the Moderating Role of Financial Development on Energy Utilization Contributes to Environmental Sustainability in GCC Economies?," Energies, MDPI, vol. 15(13), pages 1-16, June.
    4. Li, Na & Wu, Di, 2023. "Nexus between natural resource and economic development: How green innovation and financial inclusion create sustainable growth in BRICS region?," Resources Policy, Elsevier, vol. 85(PA).
    5. Bashir, Muhammad Adnan & Dengfeng, Zhao & Filipiak, Beata Zofia & Bilan, Yuriy & Vasa, László, 2023. "Role of economic complexity and technological innovation for ecological footprint in newly industrialized countries: Does geothermal energy consumption matter?," Renewable Energy, Elsevier, vol. 217(C).
    6. Xia, Aiming & Liu, Qing, 2024. "Modelling the asymmetric impact of fintech, natural resources, and environmental regulations on ecological footprint in G7 countries," Resources Policy, Elsevier, vol. 89(C).
    7. 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).
    8. Zhou, Hui & Awosusi, Abraham Ayobamiji & Dagar, Vishal & Zhu, Guohua & Abbas, Shujaat, 2023. "Unleashing the asymmetric effect of natural resources abundance on carbon emissions in regional comprehensive economic partnership: What role do economic globalization and disaggregating energy play?," Resources Policy, Elsevier, vol. 85(PA).
    9. Li, Jinlong & Shi, Yang & Song, Xiaowei, 2024. "The dynamics of digitalization and natural resources in shaping the sustainable development agenda in BRICS-T nations," Resources Policy, Elsevier, vol. 91(C).
    10. Li, Xiangrong & Zhu, Shaoying & Li, Yanyong & Chang, Ronghua, 2022. "What is the asymmetric influence of natural resource rent and green innovation on the ecological sustainability of the ARCTIC region," Resources Policy, Elsevier, vol. 79(C).
    11. Dai, Siwei & Du, Xiaoyan, 2023. "Discovering the role of trade diversification, natural resources, and environmental policy stringency on ecological sustainability in the BRICST region," Resources Policy, Elsevier, vol. 85(PB).
    12. Afshan, Sahar & Ozturk, Ilhan & Yaqoob, Tanzeela, 2022. "Facilitating renewable energy transition, ecological innovations and stringent environmental policies to improve ecological sustainability: Evidence from MM-QR method," Renewable Energy, Elsevier, vol. 196(C), pages 151-160.
    13. Liao, Jixiang & Liu, Xingye & Zhou, Xueyan & Tursunova, Nargiza Rakhimovna, 2023. "Analyzing the role of renewable energy transition and industrialization on ecological sustainability: Can green innovation matter in OECD countries," Renewable Energy, Elsevier, vol. 204(C), pages 141-151.
    14. Adebayo, Tomiwa Sunday & Onifade, Stephen Taiwo & Alola, Andrew Adewale & Muoneke, Obumneke Bob, 2022. "Does it take international integration of natural resources to ascend the ladder of environmental quality in the newly industrialized countries?," Resources Policy, Elsevier, vol. 76(C).
    15. Zhao, Xin & Samour, Ahmed & AlGhazali, Abdullah & Wang, Wenjing & Chen, Guannan, 2023. "Exploring the impacts of natural resources, and financial development on green energy: Novel findings from top natural resources abundant economies," Resources Policy, Elsevier, vol. 83(C).
    16. Hassan, Mahmoud & Kouzez, Marc & Lee, Ji-Yong & Msolli, Badreddine & Rjiba, Hatem, 2024. "Does increasing environmental policy stringency enhance renewable energy consumption in OECD countries?," Energy Economics, Elsevier, vol. 129(C).
    17. Ma, Yubo & Fan, Yufeng & Razzaq, Asif, 2023. "Influence of technical efficiency and globalization on sustainable resources management: Evidence from South Asian countries," Resources Policy, Elsevier, vol. 81(C).
    18. 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.
    19. Wang, Shubin & Li, Jian & Razzaq, Asim, 2023. "Do environmental governance, technology innovation and institutions lead to lower resource footprints: An imperative trajectory for sustainability," Resources Policy, Elsevier, vol. 80(C).
    20. Li, Ying & Tariq, Muhammad & Khan, Saleem & Rjoub, Husam & Azhar, Aisha, 2022. "Natural resources rents, capital formation and economic performance: Evaluating the role of globalization," Resources Policy, Elsevier, vol. 78(C).

    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:17:y:2025:i:4:p:1568-:d:1590924. 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.