The effects of rule of law, regulatory quality, and R&D on Japan's environmental sustainability

Abstract

This study investigates Japan's ecological footprint, addressing the lack of comprehensive research on the environmental impacts of globalization, trade openness, regulatory quality, and rule of law in the country. Using data from 1990 to 2021, the study explores the relationship between these variables and Japan's ecological footprint through autoregressive distributed lag (ARDL) analysis, Granger causality tests, and diagnostics to assess variable stability. The ARDL results reveal that (i) the rule of law and trade openness reduce Japan's ecological footprint, (ii) regulatory quality and globalization increase it in the long run, and (iii) research and development improve the ecological footprint in the short run. Additionally, the Granger causality test indicates a unidirectional relationship, where the ecological footprint influences all the explanatory variables. These findings highlight the importance of coordinated policies to address Japan's environmental challenges. To mitigate its ecological footprint, Japan should promote stronger legal frameworks, trade openness, and investment in research and development, while ensuring adherence to the rule of law.