Is financial development good for ecological footprint A Bayesian multilevel mixed-effects analysis in ASEAN countries

Improving per capita income and environmental protection are two crucial goals of macro-economic planning policies, especially in emerging countries. This study aims to investigate the impact of financial development on the ecological footprint in ASEAN countries from 1995 to 2016. The empirical results of the Bayesian multilevel mixed-effects analysis show that financial development has a moderately positive effect, whilst economic growth and urbanisation have a strongly positive effect on ecological footprint. These findings support the view of 'more money, more control' to achieve sustainable development goals in ASEAN. Based on empirical results, the study suggests that the ASEAN countries should allocate financial resources to encourage the application of eco-friendly technologies, and improve environmental regulatory standards, including the introduction of environmental taxes, defining public property rights.