From ports to power grids: evaluating the environmental implications of shipping activity, electrification, and human capital in G-20 countries

The G-20 nations-accounting for approximately 80% of global GDP and two-thirds of the world’s population, exert a disproportionately high ecological footprint, posing risks to long-term environmental sustainability. This study examines how key economic and infrastructural factors—shipping activity, electrification, human capital, economic growth, and population —influence the ecological footprint across G-20 countries from 1990 to 2023. To ensure robust and reliable estimates, this study employs multiple econometric techniques, including Driscoll and Kraay Standard Errors, Fully Modified Ordinary Least Squares, Dynamic Ordinary Least Squares, and Canonical Cointegrating Regression—each offering complementary strengths in addressing cross-sectional dependence, serial correlation, and endogeneity. The results support the Environmental Kuznets Curve (EKC) hypothesis. Notably, population growth and human capital accumulation are found to increase ecological pressures, suggesting that higher education and skill level do not automatically translate into environmentally sustainable behavior. On the other hand, shipping activity and electrification are associated with reduced ecological footprints. This study recommends encouraging clean energy infrastructure to advance electrification, promoting green technologies in transport logistics, embedding environmental awareness into educational curricula, and adopting inclusive urban planning strategies that mitigate ecological impacts.