Analyzing the non‐linear association between natural resources, remittances, and ecological footprint: An analysis of Bangladesh's environmental decline

There is a growing global concern about the challenges of sustainable development. Furthermore, these concerns are becoming increasingly prevalent in Bangladesh on a daily basis. This may be attributed to the escalating influx of remittances, the degradation of natural resources, and the potential adverse impacts of economic growth on the ecosystem. Thus, this research looks at how remittances (REM) and natural resources (NR) affect the ecological footprint (EFP) in Bangladesh by controlling economic growth (EG), renewable energy (REN), and urbanization (URB) from 1990 to 2021. The study utilizes the linear and non‐linear autoregressive distributed lag model to test the relationships between REM and NR on EFP. Positive and negative shocks to REM and NR have varied consequences on EFP, which suggests an asymmetric relationship. The findings reveal that the impact of the positive shock on NR is positive and significant. It implies that an increase in the positive shock of NR causes a rise in EFP. However, the impact of the negative shock on NR is negative but statistically insignificant. Likewise, negative shock in REM decreases the EFP by increasing ecological quality, while positive shock in REM does not significantly impact EFP. Similarly, REN and URB improve the environmental quality in Bangladesh while EG decreases. To meet sustainable development goals, policies can be designed for proficient and ecologically friendly types of energy.