Biocapacity, human capital, and ecological footprint in G7 countries: the moderating role of urbanization and necessary lessons for emerging economies

Decreasing biocapacity, accompanied by increasing ecological footprint (EF) and urbanization, is the core environmental challenge that the G7 countries have to contend with, despite enjoying tremendous growth for decades. As such, this study scrutinizes the influence of biocapacity, human capital, and urbanization on the EF with an advance technique that addresses core panel data issues with the ability to show country-specific results. The findings suggest that biocapacity, economic growth, and urbanization increase the EF, while human capital reduces it. Also, the coefficient of the interaction between urbanization and economic growth turns out negative inferring that as economic growth persists, urbanization attains the desired level required to decrease the EF. Biocapacity increases the EF in all the countries except in Canada. Further findings showed that urbanization is not particularly harmful in Canada, Japan, and the UK; however, its impact remains devastating in the USA, Germany, Italy, and France. A feedback causality exists between human capital, EF, urbanization, and economic growth. Relevant policy recommendations, directions for future research, limitations of the study, as well as potential lessons for emerging economies, are discussed.

Automated summary

The core environmental challenge faced by G7 countries is the decreasing biocapacity, increasing ecological footprint, and urbanization growth. The study found that biocapacity, economic growth, and urbanization increase ecological footprint, while human capital decreases it. Urbanization has less harmful impact in Canada, Japan, and the UK, but remains devastating in the USA, Germany, Italy, and France.