Ecological Footprints and Sustainable Environmental Management: A Critical View of China's Economy

Abstract

Global economies have recently been concerned about sustainable environmental management by reducing emissions and tackling ecological footprints. The rapid economic expansion and investment in traditional manufacturing further raises environmental degradation. China surpasses other emerging economies in the economic growth race yet has remained the top pollution-emitting economy for the last few decades, necessitating scholarly attention. This study examines the influencing factors of ecological footprints in China from the perspective of COP27. Using the extended dataset from 1988 to 2021, this study uses several time series diagnostic tests and verifies the existence of the long-run association between the study variables. Consequently, the non-linear scattered data leads to non-parametric (method of moment quantile regression) adoption. The empirical results indicate that only economic growth is a significant factor in environmental quality degradation in China. However, improving renewable energy usage, research and development, and foreign direct investment reduces the country's ecological footprint. Hence, the latter variables substantially lead to environmental sustainability. The robustness of the results is confirmed via a robust non-parametric estimator and causality test. Based on the empirical results, this study recommends increased investment in research and development, renewable production, and foreign direct investment enhancement.