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Analyzing economic growth, eco-innovation, and ecological quality nexus in E-7 countries: accounting for non-linear impacts of urbanization by using a new measure of ecological quality

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Abstract

The rising urban population and accelerated resource consumption pose major environmental challenges. Given that around 75% of global resources are consumed in urban areas, understanding the true association between urbanization (UR) and ecological quality is necessary for better urban strategies. Alongside this, eco-innovation (ECO) can limit environmental pollution and thus, it is the cornerstone of environmental policies. On that note, this research discloses the nexus between eco-innovation, economic growth (EGR), and ecological quality by considering the non-linear effects of UR in the emerging seven (E-7) nations from 1992 to 2018. Unlike previous literature, the newly developed indicator of ecological quality (the load capacity factor (LCF)) is adopted to understand the connection between UR, eco-innovation, and ecological quality since this new comprehensive indicator is based on both biocapacity and ecological footprint (EF). In the methodology, the “Continuously Updated-Fully Modified” (CuP-FM) test is used since this method offers diverse benefits for panel data estimation by accounting for major panel data estimation issues including autocorrelation, endogeneity, heteroscedasticity, fractional integration, and cross-sectional dependence. The empirical estimates unveiled that the current levels as well as high levels of UR limit the LCF. This evidence suggests that UR in the E-7 nations expands ecological degradation. This finding contradicts the assertions of ecological modernization theory that expanding urbanization brings some ecological benefits. Similarly, economic growth alleviates ecological quality. However, eco-innovation and agricultural land (AGL) contribute to enhancing the LCF and promoting ecological quality. Further, UR and eco-innovation Granger cause the LCF. Lastly, comprehensive urban environmental strategies are discussed to promote sustainable urbanization backed by eco-innovation.

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The datasets analyzed in the study can be downloaded from the references provided in the study.

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Funding

This work was supported by the Researchers Supporting Project (number RSP2023R58), King Saud University, Riyadh, Saudi Arabia.

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PZ: conceptualization, administration, methodology, and writing original manuscript; ZA: conceptualization, writing original manuscript, supervision, validation, and formal analysis; UP: writing original manuscript, writing, editing, reviewing, and analysis; SK: data curation and writing original manuscript; SA: conclusion, visualization, and writing original draft.

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Correspondence to Zahoor Ahmed.

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Zhu, P., Ahmed, Z., Pata, U.K. et al. Analyzing economic growth, eco-innovation, and ecological quality nexus in E-7 countries: accounting for non-linear impacts of urbanization by using a new measure of ecological quality. Environ Sci Pollut Res 30, 94242–94254 (2023). https://doi.org/10.1007/s11356-023-29017-3

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  • DOI: https://doi.org/10.1007/s11356-023-29017-3

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