Moving towards sustainability: how do natural resources, financial development, and economic growth interact with the ecological footprint in Malaysia? A dynamic ARDL approach.

Without enhancing the quality of the environment, the goals of sustainable development remain unachievable. In order to minimize the damage to the planet, sustainable practices need to be considered. This study is conducted to identify some of the drivers behind the increasing sustainability issues and tried to investigate the impact of natural resources, financial development, and economic growth on the ecological footprint in Malaysia from the year 1980-2019 by utilizing the dynamic simulated autoregressive distribution lag approach. It was identified that financial development, economic growth, and natural resources are the determinants behind the upsurge of the ecological footprint as all three show a positive and significant effect on ecological footprint. However, in the long run, the presence of the Environmental Kuznets Curve hypothesis was also validated in Malaysia. Therefore, it is recommended to increase awareness among the public regarding the adoption of sustainable practices in everyday life and to use green technologies that offer maximum efficiency and minimum damage to the environment in commercial and domestic activities. Finally, based on the research results, a comprehensive policy framework was proposed which could allow the Malaysian economy to attain the objectives of Sustainable Development Goals (SDGs) 7, 8, and 13.
(© 2021. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)