Does Export Diversification Matter for Ecological Footprint in Uzbekistan? Empirical Evidence from ARDL Approach

The purpose of this paper is to conduct an empirical study of the impact of export diversification on the ecological footprint in Uzbekistan using the ARDL approach based on data from 1996-2020. The ARDL bound test for cointegration reveals the level relationship between the variables. Results of the Error Correction Model disclose that export diversification significantly mitigates the ecological footprint in Uzbekistan in the short and long run. The findings confirm the EKC hypothesis for Uzbekistan as an emerging economy. The relationship between ecological footprint and GDP per capita has an inverted U-shape. Renewable energy consumption and biocapacity are other significant factors negatively affecting ecological footprint in the long run. Export diversification towards eco-friendly products can be accompanied by a more sustainable use of natural resources and promote the adoption of green technologies and energy-efficient production methods that mitigate environmental degradation. The findings allow us to identify ways of achieving environmental sustainability in Uzbekistan.