Does economic complexity matter for environmental sustainability? Using ecological footprint as an indicator

The current decade has witnessed the rise of empirical research in the domain of ecological footprint which has become a major scholarly area among environmental researchers. However, many key factors determining ecological footprint have been inadequately dealt within the existing body of knowledge. The current research aims to explore the association between economic complexity, human capital, renewable energy generation, urbanization, economic growth, export quality, trade and ecological footprint for the top ten economic complex countries. This study applied panel data estimators, for instance, fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS) and the system-GMM long-run estimators from 1980 to 2017. The long-run estimates reveal that economic complexity, economic growth, export quality, trade and urbanization increase ecological footprint. Human capital and renewable energy generation help to mitigate ecological footprint. We conclude that investment in more renewable energy generation and its consumption and efficient use of human capital will improve economic complexity, export quality, and environment in developed and developing countries.

Automated summary

This study utilized panel data estimators to explore the association between factors such as economic complexity, human capital, renewable energy generation, urbanization, economic growth, export quality, trade and ecological footprint. The long-run estimates revealed that economic complexity, economic growth, export quality, trade and urbanization increase ecological footprint, while human capital and renewable energy generation help to mitigate ecological footprint. The conclusion suggests that investing in more renewable energy generation and efficient use of human capital can improve economic complexity, export quality, and the environment in both developed and developing countries.