Environmental effects of structural change, hydro and coal energy consumption on ecological footprint in India: insights from the novel dynamic ARDL simulation

This paper examines the impact of structural change, economic growth, hydro energy consumption, and coal energy consumption on ecological footprint, in the case of India. We employ a novel dynamic autoregressive distributed lag (DYNARDL) method to improve the existing studies' limitations and weaknesses. Thus, the current research contributes empirically and methodological to the literature. The study used the newly proposed DYNARDL simulation method and frequency domain causality using data from 1970–2017 to inspect the impact of structural change, economic growth, hydro energy consumption, and coal energy consumption on ecological footprint in the case of India. Empirical results reveal that institutional structural change decreases ecological footprint in the short and long term, whereas hydropower usage decreases ecological footprint only in the long term. Conversely, economic growth positively affects ecological footprint in both the short and long term. Likewise, coal energy usage increases ecological footprint in the long term. In addition, the findings confirm the validity of the environment Kuznets curve (EKC) hypothesis in India. Furthermore, the results of the frequency domain causality test revealed that structural change, hydro-energy usage, and coal consumption could predict ecological footprint in the long term. In contrast, economic growth can predict the medium- and long-term ecological footprint. We observed that as India's production level continues to surge, so does environmental deterioration, which is associated with the scale effect.