A path towards environmental sustainability: The role of clean energy and democracy in ecological footprint of Pakistan

Political institutions play a key role in countries' environmental footprints since they govern environmental policies. Democracy is an important institutional variable that can exacerbate or alleviate the ecological footprint (EF). The limited literature on democracy and EF association unfold conflicting results. Therefore, this empirical research studies the effect of democracy on EF in Pakistan, where various strict policies have weakened democracy and the country has also been severely affected by climate change. The study employs the novel Augmented ARDL (AARDL) approach to quantify the impact of democracy on EF by including population density, clean energy, and economic growth. The findings from the AARDL method unfold cointegration among variables. The long-run results reveal that democracy is negatively associated with EF. The results also suggest the Environment Kuznets Curve (EKC) hypothesis between EF and economic growth while accounting for democracy in the model. Hence, the study concludes that democracy is a significant driver of environmental sustainability. Further, the estimates of the AARDL also support a mitigating impact of clean energy on EF, while population density upsurges EF. Finally, the AARDL based causality test is applied, which disclosed causality between most regressors and EF. Lastly, detailed policy implications are directed.

Automated summary

Political institutions, especially democracy, play a significant role in shaping a country's environmental footprints. This empirical study investigates the impact of democracy on the ecological footprint (EF) in Pakistan, a country where strict policies have weakened democracy and climate change has had severe consequences. By employing the Augmented ARDL (AARDL) approach and considering population density, clean energy, and economic growth, the study finds a negative association between democracy and EF in the long run. The results also support the Environment Kuznets Curve hypothesis when democracy is taken into account. Additionally, the study highlights the mitigating impact of clean energy on EF and the exacerbating effect of population density. Furthermore, the study applies a causality test based on AARDL, revealing causal relationships between most regressors and EF. Detailed policy implications are provided as well.