Analyzing the impact of remittance and electricity consumption on ecological footprint in South Asia: the role of globalization using panel ARDL and MMQR method

Addressing the ecological footprint is crucial for achieving sustainable development in South Asia, where the rapid economic and social developments present substantial challenges to the environment. This study aims to examine the effects of remittances, urbanization and electricity consumption on South Asia's ecological footprint, with a focus on the role of globalization. By employing a Panel ARDL framework on data spanning 2000 to 2021, we investigate the long-term and short-term dynamics of the variables. Additionally, we implement the Method of Moments Quantile Regression (MMQR) technique, which illustrated the independent variables' specific effects on the ecological footprint at various quantiles. Before utilizing these regression techniques, we conduct a set of diagnostic tests such as Cross-Sectional Dependence Test, Unit root tests (LLC, IPS, CIPS, CADF) and panel cointegration test. According to the findings of our study, remittances have a reducing effect on the ecological footprint, while GDP per capita and urbanization considerably increase it. Electricity consumption has a smaller but still significant impact on environmental degradation. Globalization exhibits an intricate correlation, encompassing both advantageous and detrimental impacts on the ecological footprint. The Dumitrescu-Hurlin causality test's findings revealed a unidirectional causality from remittances and urbanization to the ecological footprint and bidirectional causality between electricity consumption and the ecological footprint. The study proposes implementing policy measures that encourage green economic strategies, prioritize the promotion of sustainable urban practices, enhancement of energy efficiency, utilization of the advantages of globalization for the environment, and efficient management of remittances to reduce ecological strain.