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Ecological footprint, public-private partnership investment in energy, and financial development in Brazil: a gradual shift causality approach

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Abstract

The present study assesses the effect of public-private partnerships in energy and financial development on Brazil’s ecological footprint and also takes into account the role of renewable energy and economic growth using data spanning from 1983 to 2017. The study utilized several techniques including autoregressive distributive lag (ARDL) and dynamic ordinary least square (DOLS) to examine the relationship between ecological footprint and the determinants, while the gradual shift causality test was utilized to capture the causal linkage between the series in the presence of a single structural break. The outcomes of the Maki co-integration test revealed evidence of a long-run association among the variables of interest. Furthermore, the results of the ARDL and DOLS tests revealed that economic growth and public and private investment in energy increase environmental degradation, while it is mitigated by both renewable energy and financial development. Moreover, the gradual shift causality test revealed a bidirectional causal linkage between ecological footprint and economic growth. The present study recommends the establishment of a forum that will foster public and private partnerships to enhance communication, which will promote collaboration on new initiatives involving green technological innovations.

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Availability of data and materials

The data that support the findings of this study are available from the World Bank.

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Authors and Affiliations

  1. Department of Business Management, Faculty of Economics and Administrative Sciences, Girne American University, North Cyprus, 10, Mersin, Turkey

    Gbenga Daniel Akinsola

  2. Faculty of Economics and Administrative Science, Department of Economics, Near East University, North Cyprus, 10, Mersin, Turkey

    Abraham Ayobamiji Awosusi

  3. Faculty of Economic and Administrative Sciences, Department of Banking and Finance, European University of Lefke, Lefke, Northern Cyprus, TR-10, Mersin, Turkey

    Dervis Kirikkaleli

  4. University of Mediterranean Karpasia, Northern Cyprus, TR-10, Mersin, Turkey

    Sukru Umarbeyli

  5. School of Computing and Technology, Department of Information Technology, Eastern Mediterranean University, Northern Cyprus, 10, Mersin, Turkey

    Ibrahim Adeshola

  6. Faculty of Economic and Administrative Science, Department of Business Administration, Cyprus International University, Nicosia, Northern Cyprus, TR-10, Mersin, Turkey

    Tomiwa Sunday Adebayo

Authors
  1. Gbenga Daniel Akinsola
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  2. Abraham Ayobamiji Awosusi
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  3. Dervis Kirikkaleli
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  4. Sukru Umarbeyli
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  5. Ibrahim Adeshola
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  6. Tomiwa Sunday Adebayo
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Contributions

TSA, DK, and GDA designed the experiment and collected the dataset. The introduction and literature review sections are written by SU, AAA, and IA. DK and GDA constructed the methodology section and empirical outcomes in the study. GDA, TSA, and SU contributed to the interpretation of the outcomes. All the authors read and approved the final manuscript.

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Correspondence to Dervis Kirikkaleli or Tomiwa Sunday Adebayo.

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Akinsola, G.D., Awosusi, A.A., Kirikkaleli, D. et al. Ecological footprint, public-private partnership investment in energy, and financial development in Brazil: a gradual shift causality approach. Environ Sci Pollut Res 29, 10077–10090 (2022). https://doi.org/10.1007/s11356-021-15791-5

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