Dynamics among economic growth, urbanization, and environmental sustainability in IEA countries: the role of industry value-added

As an indicator of environmental degradation, the ecological footprint has seen a terrific focus in the literature. We explore the dynamics among economic growth, urbanization, and environmental sustainability in the presence of population growth and industry value-added in the thirty International Energy Agency (IEA) member countries. We apply advanced econometric modeling for empirical analysis over the period 1992 to 2016. This study's short-run results suggest that capital formation and biocapacity increase ecological footprint in the short run. The findings of long-run estimates demonstrate that industrial value-added and capital formation improve environmental sustainability. However, economic growth, urbanization, biocapacity, and population growth deteriorate environmental sustainability in the long run. Policymakers in the IEA countries are encouraged to establish policies that promote a sustained lifestyle, ecological awareness, clean technological innovations, efficient production and consumption measures, and enlarge cities to limit the adverse effects of urbanization on environmental sustainability. Finally, study limitations and future research directions are discussed.

Automated summary

In the short run, capital formation and biocapacity increase the ecological footprint, while in the long run, economic growth, urbanization, biocapacity, and population growth worsen environmental sustainability. Policymakers are encouraged to promote sustainable lifestyles, ecological awareness, clean technology innovations, and efficient production and consumption measures to mitigate the negative impacts of urbanization on environmental sustainability.