Examining the sustainable development process through the economic complexity, technology, urbanization, and renewable energy in D-8 countries

Abstract

This study employs the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model, thoroughly investigating the intricate linkage between urbanization, economic complexity, information and communication technology (ICT), and ecological footprint. It introduces trade openness and renewable energy as technology components, adding to the framework of the model. The study also tests the EKC hypothesis and the moderating impact of renewable energy sources on the relationship between economic complexity, ICT, and ecological footprint. The analysis is based on panel data from D-8 countries spanning 2003–2023. The analysis outcomes revealed that the N-shaped Environmental Kuznets Curve (EKC) hypothesis, validated between ecological footprint and economic complexity, holds significant implications for policy decisions. They also indicate that urbanization escalates the ecological footprint, while ICT, renewable energy sources, and trade openness mitigate it, suggesting potential environmental sustainability strategies. Moreover, the findings indicate that urbanization, economic complexity, and the interplay of ICT and renewable energy sources can effectively reduce the ecological footprint, offering practical avenues for curbing environmental impact. The panel causality findings, which establish a bidirectional causality linkage between all explanatory variables and the ecological footprint, further underscore the importance of these factors in shaping environmental outcomes. Finally, within the context of Sustainable Development Goals (SDGs) 7, 8, 11, 13, and 17, the links between urbanization, economic complexity, ICT, and the consumption of renewable energy resources are discussed, and policy recommendations are presented. © The Author(s) 2025.