Trade competitiveness and sustainable energy practices: The moderating role of ecological footprint

Abstract

The existing literature regarding the deeper understanding of the complex dynamics between trade competitiveness, sustainable energy practices, and environmental sustainability is scare in emerging economies. In this regard, this study aims to examine the relationship between trade competitiveness, sustainable energy practices, and the moderating role of ecological footprints in the BRICS countries (Brazil, Russia, India, China, and South Africa). Using the panel data from 1990 to 2021 by applying Cross-Sectional Autoregressive Distributive Lag Model (CS-ARDL). The findings of our study reveal that trade competitiveness plays a pivotal role in advancing sustainable energy practices, with countries demonstrating high trade competitiveness exhibiting more robust and favourable approaches to sustainability. Furthermore, the ecological footprint was identified as a critical moderator in this relationship, indicating that countries with strong trade competitiveness can have an even more significant impact on sustainable energy practices when they operate within sustainable ecological boundaries. The study emphasizes the need for policymakers to integrate ecological considerations into trade policies, enforce environmental regulations, and promote eco-friendly technologies to balance economic growth and environmental sustainability.

Keywords

• Trade competitiveness
• Renewable energy
• Non-renewable energy
• BRICS
• CS-ARDL