Examining the validity of the cubic relationship between economic growth and environmental degradation in India

This study is an attempt to find the short-run and long-run linkages between ecological footprint and per capita GDP, appropriating financial development, renewable energy, and urbanization as control variables. The study is confined to India for the period 1980 to 2021. The ARDL bound testing method approves an N-shaped association between per capita GDP and ecological footprint, both in the short-run and long-run. The long-run coefficients of lnGDP, lnGDP2, and lnGDP3 have positive, negative, and positive values of 10.27, −1.37, and 0.06, respectively. The error correction term is -0.88, showing a high pace of adjustment towards the long-run equilibrium. The rising first phase (at a 4% growth rate) turns in 1998 at a per capita GDP of $723.10. The third rising phase of further environmental deterioration shall begin in 2047 at a per capita GDP of $5666.71. In between, we have an inverse relationship, and the economy is currently passing through this second phase. The control variables, financial development, renewable energy, and urbanization, have an inverse and significant relationship with ecological footprint, with numerical values of −0.003, −0.011, and −0.14, respectively. This indicates that an increase in the control variable leads to an improvement in EF. The result offers an edge to the policymakers, and the initiation of a positive relationship between ecological footprint and per capita GDP after 2047 can be spread out. This is possible by focusing on the R&D sector and subsidizing renewable energy sources. The Lifestyle for Environment (LiFE) initiative, designed to encourage sustainable practices and the circular economy, can play a transformative role in the development process.