Do renewable energy consumption and financial globalisation contribute to ecological sustainability in newly industrialized countries?

In this study, the Method of Moments Quantile Regression (MMQR) technique was used to assess the role of financial globalization and renewable energy consumption on ecological footprint in newly industrialized countries (NICs) using annual data from 1990 to 2018. We also incorporated other drivers of ecological footprint, such as natural resources and economic growth. The findings from the MMQR unveiled that financial globalization and renewable energy consumption contribute to environmental quality in each quantile (0.1-0.90), while economic growth and natural resource increase ecological footprint across all quantiles (0.1-0.90). In addition, the Environmental Kuznets Curve hypothesis was validated across all quartiles (0.1-0.90). Similar findings are endorsed by alternative heterogeneous panel estimators, however, their parameters magnitude substantially varied. Additionally, via the route of natural resources, financial globalization is proven to have an indirect positive influence on the environment across middle and higher quantiles (0.4-0.90). Lastly, the panel causality test unveiled that financial globalization, renewable energy, natural resources and economic growth can predict ecological footprint. As a result, the present research's empirical findings can help policymakers understand how renewable energy sources and financial globalization can achieve sustainable economic growth and address environmental issues. (C) 2022 Elsevier Ltd. All rights reserved.

Automated summary

This study uses the Method of Moments Quantile Regression (MMQR) technique to analyze the impact of financial globalization and renewable energy consumption on ecological footprint in newly industrialized countries. The findings suggest that financial globalization and renewable energy consumption contribute to environmental quality, while economic growth and natural resource consumption increase ecological footprint. The study also validates the Environmental Kuznets Curve hypothesis and finds that financial globalization indirectly affects the environment through natural resources.