DefinePK

Abstract

Environmental Performance has surfaced as a pressing concern, captivating the researcher's interest and sparking an expansion of empirical studies in the field. This study primarily focuses on the ecological footprint (EF) as a measure of environmental performance. This study evaluates the relationship among financial liberalization, urbanization, ecological footprints, and institutional quality. The data of the study covers 160 nations worldwide from 2001 to 2021 and is used to inform policy recommendations. By applying the Generalized Method of Moments (GMM), the results show that financial liberalization and institutional quality both increase the ecological footprints. In contrast, the deterioration of environmental performance is decreased by urbanization. Unexpectedly, green growth has a favorable and noteworthy effect on ecological footprints, indicating that although it promotes the economic growth of the country, however, it can unintentionally result in more environmental pressures.  The study gives policymakers important insight that helps them balance environmental and financial goals in pursuing long-term sustainability.