The impact of foreign direct investment, renewable and non-renewable energy consumption, and natural resources on ecological footprint: an Indian perspective
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 13 February 2023
Issue publication date: 2 January 2024
Abstract
Purpose
Globally, India ranks third in greenhouse gas (GHGs) emissions. Decarbonizing India's economy would necessitate significant changes in how the country generates energy, manufactures things, delivers services and manages natural resources. Recently, scholars from different parts of the world have used various indicators like carbon and methane emissions to investigate potential solutions to the global warming problem that has resulted in climate change. Therefore, this study aims to investigate the impact of foreign direct investment, renewable and non-renewable energy consumption, in addition to economic growth, trade openness, and natural resources on ecological footprint.
Design/methodology/approach
Using India's yearly data from 1990 to 2016, this research investigates the impact of direct foreign investment (FDI), trade (TA) and natural resources (NR) on the ecological footprint (EF) within the framework of economic growth (GDP), renewable (RE) and non-renewable (NRE) energy consumption. The Zivot–Andrews unit root approach was used to examine the structural breaks in data series and the presence of stationary. An auto regressive distributive lag model was used to investigate the presence of long-run and short-run dynamic relationships among the variables.
Findings
The empirical findings demonstrate that FDI, RE and GDP have a negative and substantial impact on EF in the long term; in contrast, NRE and TA are significant and positive. The Granger causality test indicates that feedback transmission was observed between NR and EF and TA and EF. One-way causation passed from GDP to FDI and NR; TA to FDI and RE.
Originality/value
Indian Government and authorities should push for an eco-friendly manufacturing process and technology adaptation to improve environmental quality.
Keywords
Acknowledgements
This paper has not been submitted for publication to any journal, and it is not currently being reviewed by another journal or publishing venue.
Funding: This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.
Conflict of Interest: The authors declare that there is no conflict of interest with any organization and individuals concerned while preparing this manuscript.
Data Availability Statement: On reasonable request, the corresponding author will provide the datasets created and/or analyzed during the current work.
Citation
Roy, A. (2024), "The impact of foreign direct investment, renewable and non-renewable energy consumption, and natural resources on ecological footprint: an Indian perspective", International Journal of Energy Sector Management, Vol. 18 No. 1, pp. 141-161. https://doi.org/10.1108/IJESM-09-2022-0004
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited