Evaluating the Impact of Energy Mix and Digital Economy on Ecological Footprint in GCC: Fresh Insight from Panel ARDL Approach

Abstract

This study examines the impact of economic growth, digitalization, and energy mix on the ecological footprint in the GCC region from 2000 to 2021. Using advanced econometric techniques, including Panel ARDL, AMG, and CCEMG estimations, the research explores both short-run and long-run dynamics while ensuring robust and valid results. Pre-estimation tests, such as Cross-Sectional Dependence (CSD) and panel unit root tests, confirm that variables are free from unit root problems but exhibit CSD, emphasizing economic interdependencies in the region. Panel cointegration tests reveal long-term equilibrium relationships among the variables. The findings indicate that economic growth, non-renewable energy consumption, and population significantly increase the ecological footprint, highlighting their role in driving environmental degradation. Conversely, renewable energy and digitalization significantly reduce the ecological footprint, showcasing their potential to support environmental sustainability. Validation through AMG and CCEMG methods confirms the robustness of the Panel ARDL results. This study contributes to the understanding of how economic and energy transitions interact with ecological outcomes in resource-rich economies. The results underline the critical need for policies promoting renewable energy, sustainable urbanization, and the integration of digital technologies to balance economic growth with environmental sustainability in the GCC region.