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The role of technological innovation, economic policy uncertainty, and poverty reduction in attaining environmental sustainability agenda: contextual evidence from developing South and East Asian Economies

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Abstract

Mitigating poverty and ecological destruction signifies vital challenges to comprehend sustainable growth and development. Extensive pragmatic studies have inspected these challenges within the Sustainable Development Goals (SDGs) framework. Nevertheless, it is important to distinguish that the intensifying problem of environmental deterioration establishes a significant impediment to accomplishing SDGs and minimizing poverty. The prime objective of the present analysis is to identify the association between ecological footprint, poverty, and economic policy uncertainty within the situation of developing Asian economies. Global warming and climatic issues have recently become a persistent and critical worldwide concern. Notably, the demesne of energy and environmental literature has not recently undertaken an inclusive investigation of the complications of economic policy uncertainty with combating poverty policies on ecological footprint. The current analysis identifies the research gap, which investigates the link between poverty, GDP growth, the uncertainty of economic policies, energy consumption, technological changes, and population growth for developing South-East Asian economies from 1996 to 2018. The STIRPAT model and CS-ARDL approach were used for modeling, and for robustness check, the FMOLS test was applied. The causality estimation outcomes of the Dumitrescu–Hurlin panel revealed a two-way association among numerous important variables, namely ecological footprint with energy consumption, poverty, economic growth, economic policy uncertainty, and technological innovation. Based on these comprehensive results, we offer substantial policy suggestions. For policy implications, this analysis investigates many elements to propose strategies and promote environmentally sustainable goals, such as sustainable growth initiatives, poverty reduction, adoption of clean energy sources, enhancement of technological innovation, and mitigating ecological humiliation in the Asian region. This study makes various significant influences by reconnoitering the EKC in the context of these developing economies and proposing insights into strategies to fight ecological destruction.

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Availability of data and materials

The datasets analyzed during the current study are available in the World Bank Data Bank Database repository (https://data.worldbank.org).

Abbreviations

GDP:

Economic growth

G-7:

Group of seven

CIP:

Cross-sectional augmented panel unit root test

CS-ARDL:

Cross-sectional augmented autoregressive distributed lags

SDGs:

Sustainable Development Goals

CO2 :

Carbon dioxide

EKC:

Environmental Kuznets curve (EKC)

EPU:

Economic policy uncertainty

GMM:

Generalized method of moments

EFP:

Ecological footprint

ARDL:

Autoregressive distributed lag models

ENG:

Energy consumption

TEC:

Technology

PVR:

Poverty

PPG:

Population

CSD:

Cross section dependency

PM-ARDL:

Pooled mean group-autoregressive distributed lag

BRICS:

Brazil, Russia, India, China, South Africa

FMOLS:

Fully Modified Ordinary Least Square

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Authors and Affiliations

  1. Department of Economics, National University of Modern Languages (NUML), Islamabad, Pakistan

    Hummera Saleem

  2. Kohat University of Science and Technology (KUST), Kohat, KPK, Pakistan

    Muhammad Bilal Khan

  3. Department of Agricultural Economics. Faculty of Agriculture, University of Zabol, Zabol, Iran

    Seyed Mohammadreza Mahdavian

  4. College of Business, Al Ain University, Al Ain, Abu Dhabi, United Arab Emirates

    Umar Nawaz Kayani

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  4. Umar Nawaz Kayani
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Appendix (A)

Appendix (A)

List of selected Asian countries

Panel 1

Panel 2

Developing South Asian Countries

Developing East Asian Countries

Bangladesh

Cambodia

Bhutan

China

India

Indonesia

Nepal

Malaysia

Pakistan

Philippines

Sri Lanka

Vietnam

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Saleem, H., Khan, M.B., Mahdavian, S.M. et al. The role of technological innovation, economic policy uncertainty, and poverty reduction in attaining environmental sustainability agenda: contextual evidence from developing South and East Asian Economies. Environ Dev Sustain (2023). https://doi.org/10.1007/s10668-023-03919-1

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