Unveiling the Drivers of Brazil's Ecological Footprint: The Role of Global Value Chain Participation
Author : Camila do Carmo Hermida, Alexandra Maria Rios Cabral, Francielly de Fatima Almeida,Juliana Costa Ribeiro Prates
Abstract :This study investigates the determinants of Brazil's ecological footprint, with a focus on globalization and participation in global value chains (GVCs). Using annual data from 1990 to 2020 and employing the Autoregressive Distributed Lag (ARDL) methodology, we analyze the short- and long-run effects of economic growth, energy composition, trade openness, GVC participation, and environmental policy stringency. The results reveal that economic growth significantly increases Brazil’s ecological footprint, consistent with the scale effect hypothesis, where greater output leads to intensified environmental pressures. In contrast, renewable energy consumption and stringent environmental policies show a robust and statistically significant negative relationship with the ecological footprint, underscoring their crucial role in mitigating environmental degradation. Furthermore, trade openness and backward participation in GVCs are associated with reductions in environmental impact, suggesting that engagement in global production networks can foster technological upgrading and efficiency gains. Conversely, forward GVC participation exacerbates environmental pressure, reflecting Brazil’s specialization in resource-intensive and extractive sectors. Notably, renewable energy use emerges as the most influential factor in reducing the ecological footprint, followed by environmental governance. These f indings emphasize the importance of designing strategic trade policies, promoting green technologies, and enhancing institutional frameworks to ensure that economic globalization contributes to environmental sustainability, especially in emerging economies seeking balance growth and ecological preservation.
Keywords :Globalization, International Trade, Sustainability, Production Fragmentation, Renewable Energy.
Conference Name :International Conference on Business, Economics and Management (BEM-25)
Conference Place Milan, Italy
Conference Date 5th Nov 2025
