The usage of spatial econometric approach to explore the determinants of ecological footprint in BRI countries.

Abstract

Protecting our environment is not a choice, but a responsibility we owe to future generations. Numerous studies examined the factors affecting the environmental deterioration but this research takes a step further by employing a spatial dependence model to evaluate spatial impact of ecological footprint and its contributing factors, particularly productive capacities which is hardly investigated in economic literature of BRI economies. For the purpose, the annual data of 54 BRI countries is analyzed for the time period from 2000 to 2018 by employing various econometric techniques. The outcomes of the Durbin model express that neighboring economies significantly affect the ecological footprint of an economy, highlighting the need for a regional policy framework to address environmental issues. It is also found that improving the productive capacities, green investment and democratic quality decrease the ecological footprint while per capita GDP, globalization, and development of financial sector increase the environmental deterioration. The significant interdependence of the countries within the region, a regional policy and vision must be implemented to safeguard the environment. The research findings can facilitate policy formulation aimed at promoting environmental sustainability, with particular focus on enhancing productive capacities and green investments.