Monetary Policy, Institutional Quality, and Ecological Footprint: Insight From ECOWAS

Bosomtwe E., Kusi B. A., Gadzo S. G., NTIM C.

Climate Resilience and Sustainability, vol.5, no.1, 2026 (Scopus) identifier identifier

  • Publication Type: Article / Article
  • Volume: 5 Issue: 1
  • Publication Date: 2026
  • Doi Number: 10.1002/cli2.70048
  • Journal Name: Climate Resilience and Sustainability
  • Journal Indexes: Scopus
  • Keywords: ecological footprint, ECOWAS, GMM, green economy, institutional quality, monetary policy
  • Azerbaijan State University of Economics (UNEC) Affiliated: Yes

Abstract

This study examines the effect of monetary policy on ecological footprints (EFPs) and the moderating role of institutions in ECOWAS. Using a census of all 15 member states and 19 years of panel data, pooled mean, fixed effects, difference GMM, and SGMM were applied. Policy rates and money supply had a significant positive impact on EFPs. Rule of law negatively moderated this relationship, while regulatory quality had a positive moderating effect. Strong institutions and effective regulation reduce biodiversity loss and EFPs.