What determines environmental deficit in Asia? Embossing the role of renewable and non-renewable energy utilization

Considering the sustainable development goals (SDGs) 7 and 13 of certain access to the reliable, renewable and clean energy technologies and climate action, this study explored the dynamic nexus between financial development, economic growth, non-renewable and renewable energy utilization, trade openness and ecological footprint by utilizing the second-generation panel data approach covering the period from 1990 to 2014 for 20 Asian economies. The inspection of cross-sectional dependency (CSD) tests confirmed the CSD exists across cross-sections. For this intention, the study employed the second-generation panel unit root tests, panel cointegration techniques, augmented mean group (AMG) approach for the estimation of long-run magnitude of the parameters. The empirical findings illustrate that economic growth and non-renewable energy utilization significantly accelerate the environmental deficit, while renewable energy utilization reduces the total environmental damages in the long-run. Furthermore, country-specific outcomes explore the influence of renewable and non-renewable energy utilization on ecological footprint varies in terms of their nature of association, influence in their magnitude and their significance level. Moreover, Dumitrescu and Hurlin (D-H) causality test discovered the feedback hypothesis between ecological footprint and financial development, economic growth, nonrenewable and renewable energy utilization and trade openness. Finally, current study expresses the some vital policy implications for Asian countries. (c) 2021 Elsevier Ltd. All rights reserved.