Do economic policy uncertainty and environment-related technologies help in limiting ecological footprint?

Hussain, Muzzammil; Arshad, Zeeshan; Bashir, Adnan

Do economic policy uncertainty and environment-related technologies help in limiting ecological footprint?

2022

Hussain, Muzzammil | Arshad, Zeeshan | Bashir, Adnan

Economic policies related to energy and the environment are found uncertain in developing economies. Renewable energy sources are gradually increasing in energy structure (ES) with the adoption of environment-related technologies (ERT). However, least attention is paid to investigating the nexus of economic policy uncertainty (EPU), ERT, ES, and ecological footprint (EF). Therefore, this study is an effort to examine the EPU, ERT, ES, and interaction of EPU and ERT on EF for BRICS economies under the umbrella of the STIRPAT model. By using the data from 1992 to 2020, findings are estimated through “cross-sectional dependence (CD test); CIPS and CADF unit root test; Westerlund’s co-integration; and CS-ARDL, AMG, and CCEMG.” Findings unveiled the negative role of EPU on EF. Furthermore, the role of RE and ERT is positive and substantial in decreasing the environmental degradation in BRICS. Therefore, the BRICS economies are suggested to be consistent on economic policies to catch the positive impact of ERT. Findings are robust to the policy implications.

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