The determinants of ecological footprint of production: A spatial panel data estimation

• Energy use growth raises production footprint, indicating resource intensity. • Higher recycling rates reduce the ecological footprint boosting sustainability. • Energy imports cut production footprint by enhancing energy efficiency. • Trade globalization raises resource consumption impacting the production footprint. This study examines how trade, energy, waste and ecological production footprints are related across 24 European Union countries over the period 2005–2020. Using econometric analysis, the findings support that a 1% increase of freight transport volume is linked to an increase in Total Production Footprint (TPF) by up to 0.06 percentage points. Conversely, higher energy imports and energy use are associated with a reduction in TPF, indicating that the relationship among these variables is more complex. The study identifies trade globalization and energy consumption during production as major factors of TPF, thus suggesting the importance of energy efficiency policies. It also stresses the relevance of increasing recycling rates and incorporating circular economy solutions to curb environmental degradation, calling for a holistic policy making approach that captures the intricate nature of trade while considering its linkages with energy and waste management requirements.