Asymmetric Impacts of Environmental Policy, Financial, and Trade Globalization on Ecological Footprints: Insights from G9 Industrial Nations

Jianguo Du, Yasir Rasool () and Umair Kashif
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Jianguo Du: School of Management, Jiangsu University, Zhenjiang 212100, China
Yasir Rasool: School of Management, Jiangsu University, Zhenjiang 212100, China
Umair Kashif: School of Finance and Economics, Fuzhou University, Fuzhou 350108, China

Sustainability, 2025, vol. 17, issue 4, 1-21

Abstract: This study investigates the effects of financial globalization, trade globalization, and information and communication technology on the ecological footprint in G9 industrial economies (China, the United States, Japan, Germany, India, South Korea, Italy, France, and the United Kingdom) from 2000Q1 to 2018Q4. A distinctive Method of Moments Quantile Regression (MMQR) model was employed to analyze these relationships, and the Bootstrap Quantile Regression (BSQR) model was used to validate the results. The findings reveal that financial globalization (FG), environmental tax (ETAX), and institutional quality (IQ) contribute to environmentally sustainable development by reducing the ecological footprint (ECOFP). In contrast, trade globalization, information and communication technology (ICT), and gross domestic product (GDP) have a significant positive impact on the ecological footprint, leading to increased environmental degradation. The BSQR results corroborate these findings, confirming the roles of financial globalization, institutional quality, environmental tax, trade globalization, information and communication technology, and gross domestic product in shaping the ecological footprint. Based on these results, policymakers in G9 industrial nations should promote financial globalization as a tool to reduce the ecological footprint by encouraging green financing and environmentally sustainable investments. For trade globalization, stricter environmental regulations and sustainable trade practices are essential to mitigate its adverse environmental effects. Also, efforts to minimize the ecological impact of information and communication technology should focus on integrating renewable energy into ICT infrastructure and advancing green technology innovations.

Keywords: ecological footprint; financial globalization; trade globalization; G9 industrial nations (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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