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Investigating the asymmetric linkages between infrastructure development, green innovation, and consumption-based material footprint: Novel empirical estimations from highly resource-consuming economies

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  • Razzaq, Asif
  • Ajaz, Tahseen
  • Li, Jing Claire
  • Irfan, Muhammad
  • Suksatan, Wanich

Abstract

The role of a reliable resource consumption measurement is essential for devising a relevant climate policy. The consumption-based material footprint is trade-adjusted domestic resource consumption that presents an accurate picture of the domestic material footprint. Pursuing the same, this study draws asymmetric linkages between infrastructure development, green innovation, and consumption-based material footprint (MF) in the top 11 highly material-consuming countries. Our preliminary findings strictly reject the preposition of data normality and highlight that the observed relationship is quantile-dependent, which may disclose misleading results in previous studies using linear methodologies. In compliance, a novel empirical estimation technique popularized as Method of Moments Quantile Regression is employed that simultaneously deal with non-normality and structural changes in data. The results exhibit that infrastructure development (green innovation) significantly increases (decreases) MF mainly across medium to higher quantiles (medium-higher level of MF). Interestingly, the resource-depleting effect of infrastructure is highest for higher quantiles and lowest for lower quantiles of MF. Economic growth (globalization) increase MF, and their resource-depleting effect is higher (lowest) for lower quantiles and lowest (highest) for higher quantiles. Lastly, population exhibits an inverted-U shape relationship with MF across lower to higher quantiles. These results suggest pertinent policy recommendations.

Suggested Citation

  • Razzaq, Asif & Ajaz, Tahseen & Li, Jing Claire & Irfan, Muhammad & Suksatan, Wanich, 2021. "Investigating the asymmetric linkages between infrastructure development, green innovation, and consumption-based material footprint: Novel empirical estimations from highly resource-consuming economi," Resources Policy, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:jrpoli:v:74:y:2021:i:c:s0301420721003123
    DOI: 10.1016/j.resourpol.2021.102302
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