Romanian Journal of Economic Forecasting • Volume 29, Issue 2, Pages 31-49 • August 2026

RENEWABLE ENERGY TRANSITIONS, CAPITAL FORMATION, AND ECOLOGICAL FOOTPRINT IN ASIA-PACIFIC ECONOMIES: A DYNAMIC STIRPAT AND FOOTPRINT DECOMPOSITION ANALYSIS

Lai Van TAI1
1 HCMC University of Technology, Vietnam National University, Ho Chi Minh City, Vietnam; Transilvania University of Brasov, Romania
Monica RĂILEANU SZELES2
2 Transilvania University of Brașov and Institute for Economic Forecasting, Romania
Persistent Identifier (DOI): https://doi.org/10.55991/j.rjef.32189

Abstract

Environmental pressures in the Asia-Pacific region have intensified alongside rapid economic growth, structural transformation, and rising energy demand. This study investigates how renewable energy, capital formation, and economic development shape the ecological footprint (EF) across 38 Asia-Pacific economies from 2000 to 2022. Using a dynamic STIRPAT-based empirical framework, we examine both aggregate EF and its six subcomponents. The results show that both renewable energy consumption and production reduce EF, highlighting the environmental benefits of expanding clean-energy capacity. Economic development exhibits a U-shaped relationship with EF: early growth stages improve efficiency and reduce ecological pressures, whereas higher income levels eventually increase EF. Capital formation raises EF, indicating continued investment in resource- and energy-intensive activities, while population is associated with lower EF, likely reflecting demographic transition and efficiency gains. Subcomponent analyses reveal heterogeneous drivers, with the carbon footprint most closely mirroring overall EF dynamics. These findings underscore the need to accelerate clean-energy transitions, redirect investment toward green sectors, and strengthen environmental governance to maintain ecological sustainability as economies develop

How to Cite

To cite this article, select a layout configuration: