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Unveiling green trade-led EKC framework: A comprehensive analysis using carbon, material, and ecological footprints across G20 nations.

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Title: Unveiling green trade-led EKC framework: A comprehensive analysis using carbon, material, and ecological footprints across G20 nations.
Authors: Kumar, Manobal1 (AUTHOR) p20240032@pilani.bits-pilani.ac.in, Mohapatra, Geetilaxmi1 (AUTHOR) geetilaxmi.bits@gmail.com, Giri, Arun Kumar1 (AUTHOR) akgiri.bits@gmail.com
Source: Journal of Environmental Management. Nov2025, Vol. 394, pN.PAG-N.PAG. 1p.
Subjects: Environmental quality, Group of Twenty countries, Ecological impact, Group of Twenty, Sustainability, Sustainable commerce, Resource allocation
Geographic Terms: Germany, United States, China
Abstract: Achieving environmental sustainability remains a critical global challenge, with unsustainable consumption and production practices, where green trade can play a pivotal role in addressing this issue. The present study is a pioneering attempt to examine the non-linear relationship between green trade and environmental quality among G20 countries within the trade-led EKC framework, evaluating three critical environmental quality indicators, including carbon, material, and ecological footprints, over the period 1990–2023. The study employs robust panel econometric techniques, including Feasible Generalized Least Squares (FGLS), Fully Modified Ordinary Least Squares (FMOLS), and the Dynamic Ordinary Least Squares (DOLS), complemented by rigorous diagnostic tests to address cross-sectional dependence, heterogeneity, stationarity, and cointegration. The results confirm an inverted N-shaped EKC for carbon and ecological footprints, while an N-shaped relationship for material footprint, suggesting more complex green trade–environment interactions. The estimated turning points are $25.22 billion and $43.67 billion for the carbon footprint, $2.50 billion and $47.51 billion for the material footprint, and $13.97 billion and $30.34 billion for the ecological footprint. Among G20 nations, Germany, China, and the USA emerge as leaders across the models, surpassing the turning points of EKC, whereas France, Italy, and the UK are positioned near the turning point that can act as benchmarks for optimizing green trade to achieve low emissions targets. Additionally, the result supports the Pollution Haven Hypothesis, indicating that FDI has accelerated environmental degradation in G20 nations. Moreover, the Granger causality tests unveil significant bidirectional relationships between green trade and different footprint indicators, which suggests that trade and environmental outcomes reinforce each other. These nuanced findings underline the crucial need for targeted, stage-specific policy measures promoting green innovation, technology transfer, and circular economy practices to harness the long-term sustainability potential of green trade effectively. [Display omitted] • Advances the EKC framework using green trade as a key environmental driver. • Green trade-led EKC examines its impact on carbon, material, and ecological footprints. • Uses FGLS, FMOLS, and DOLS to capture trade–environment dynamics in G20 nations. • Finds N-shaped EKC for material, and an inverted N-shaped for carbon and ecological footprint. • Germany, China, and the USA emerge as leaders across the models. [ABSTRACT FROM AUTHOR]
Copyright of Journal of Environmental Management is the property of Academic Press Inc. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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DbLabel: Engineering Source
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  Data: <searchLink fieldCode="DE" term="%22Germany%22">Germany</searchLink><br /><searchLink fieldCode="DE" term="%22United+States%22">United States</searchLink><br /><searchLink fieldCode="DE" term="%22China%22">China</searchLink>
– Name: Abstract
  Label: Abstract
  Group: Ab
  Data: Achieving environmental sustainability remains a critical global challenge, with unsustainable consumption and production practices, where green trade can play a pivotal role in addressing this issue. The present study is a pioneering attempt to examine the non-linear relationship between green trade and environmental quality among G20 countries within the trade-led EKC framework, evaluating three critical environmental quality indicators, including carbon, material, and ecological footprints, over the period 1990–2023. The study employs robust panel econometric techniques, including Feasible Generalized Least Squares (FGLS), Fully Modified Ordinary Least Squares (FMOLS), and the Dynamic Ordinary Least Squares (DOLS), complemented by rigorous diagnostic tests to address cross-sectional dependence, heterogeneity, stationarity, and cointegration. The results confirm an inverted N-shaped EKC for carbon and ecological footprints, while an N-shaped relationship for material footprint, suggesting more complex green trade–environment interactions. The estimated turning points are $25.22 billion and $43.67 billion for the carbon footprint, $2.50 billion and $47.51 billion for the material footprint, and $13.97 billion and $30.34 billion for the ecological footprint. Among G20 nations, Germany, China, and the USA emerge as leaders across the models, surpassing the turning points of EKC, whereas France, Italy, and the UK are positioned near the turning point that can act as benchmarks for optimizing green trade to achieve low emissions targets. Additionally, the result supports the Pollution Haven Hypothesis, indicating that FDI has accelerated environmental degradation in G20 nations. Moreover, the Granger causality tests unveil significant bidirectional relationships between green trade and different footprint indicators, which suggests that trade and environmental outcomes reinforce each other. These nuanced findings underline the crucial need for targeted, stage-specific policy measures promoting green innovation, technology transfer, and circular economy practices to harness the long-term sustainability potential of green trade effectively. [Display omitted] • Advances the EKC framework using green trade as a key environmental driver. • Green trade-led EKC examines its impact on carbon, material, and ecological footprints. • Uses FGLS, FMOLS, and DOLS to capture trade–environment dynamics in G20 nations. • Finds N-shaped EKC for material, and an inverted N-shaped for carbon and ecological footprint. • Germany, China, and the USA emerge as leaders across the models. [ABSTRACT FROM AUTHOR]
– Name: AbstractSuppliedCopyright
  Label:
  Group: Ab
  Data: <i>Copyright of Journal of Environmental Management is the property of Academic Press Inc. and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.)
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RecordInfo BibRecord:
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      – Type: doi
        Value: 10.1016/j.jenvman.2025.127528
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      – Code: eng
        Text: English
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      Pagination:
        PageCount: 1
        StartPage: N.PAG
    Subjects:
      – SubjectFull: Environmental quality
        Type: general
      – SubjectFull: Group of Twenty countries
        Type: general
      – SubjectFull: Ecological impact
        Type: general
      – SubjectFull: Group of Twenty
        Type: general
      – SubjectFull: Sustainability
        Type: general
      – SubjectFull: Sustainable commerce
        Type: general
      – SubjectFull: Resource allocation
        Type: general
      – SubjectFull: Germany
        Type: general
      – SubjectFull: United States
        Type: general
      – SubjectFull: China
        Type: general
    Titles:
      – TitleFull: Unveiling green trade-led EKC framework: A comprehensive analysis using carbon, material, and ecological footprints across G20 nations.
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            NameFull: Kumar, Manobal
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            NameFull: Mohapatra, Geetilaxmi
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            NameFull: Giri, Arun Kumar
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            – D: 01
              M: 11
              Text: Nov2025
              Type: published
              Y: 2025
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              Value: 394
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