ICTs, growth, and environmental quality nexus: dynamic panel threshold regression.
Sze-Wei Yong1,2, Siong-Hook Law3, Saifuzzaman Ibrahim3
1School of Business and Economics, Universiti Putra Malaysia, 43400, UPM Serdang, Selangor, Malaysia. yoswei@yahoo.com.au.
Environmental Science and Pollution Research International
|October 19, 2022
Summary
Information and communication technologies (ICTs) positively impact environmental quality in developing nations once a specific threshold is met. Below this threshold, ICTs have an insignificant effect, highlighting the importance of strategic adoption for sustainable growth and environmental protection.
Area of Science:
- Environmental Science
- Economics
- Information Technology
Background:
- Digitalization and automation in manufacturing are driving Information and Communication Technology (ICT) adoption.
- This adoption raises environmental concerns, necessitating an examination of ICT's impact on ecological quality.
- Understanding the interplay between ICT, economic growth, and environmental quality is crucial for developing nations.
Purpose of the Study:
- To investigate the influence of ICT adoption on environmental quality in developing countries.
- To analyze the relationship between ICT, environmental quality (CO2 emissions), and economic growth.
- To determine the threshold value of ICT adoption impacting environmental quality.
Main Methods:
- Utilized dynamic panel threshold regression analysis.
- Sampled 69 developing countries from 2010 to 2019.
- Applied threshold technique to identify ICT's impact above and below a specific value.
Main Results:
- ICT adoption positively impacts environmental quality (CO2 emissions) significantly when above the threshold value of 4.699.
- Below the ICT threshold, the impact on environmental quality is positive but statistically insignificant.
- Economic growth reduces CO2 emissions in developing countries when ICT adoption is below the threshold.
Conclusions:
- A specific ICT threshold value is critical for achieving positive environmental outcomes.
- Strategic ICT adoption is necessary to foster sustainable economic growth and mitigate environmental degradation.
- Developing nations must leverage the ICT threshold to balance economic development with environmental protection.
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