Investigating the Role of Information and Communication Technologies, Economic Growth, and Foreign Direct Investment in the Mitigation of Ecological Damages for Achieving Sustainable Development Goals

Abstract

At the present time, information and communication technology (ICT) has played a vital role in socio-economic development such as economic growth, literacy, life expectancy, and employment levels in societies, however, such development has come with various environmental damages perspectives. This study scrutinizes the impact of ICT, economic growth, and foreign direct investment (FDI) on carbon dioxide (CO2) emissions in the 44 One Belt and Road Initiative (OBRI) countries split into sub-region from 1991 to 2019. This study applied various econometrics approaches such as cross-sectional dependence, second-generation unit root, and Westerlund panel cointegration techniques are executed to analyze the panel data set. The full modified ordinary lease square and dynamic ordinary lease square estimators are applied to investigate the long–term influence of ICT development, GDP (economic growth), and FDI on CO2 emissions. The empirical analysis was performed at a disaggregated level to assess the possible environmental influences across the OBRI countries. Overall, the results reported that broadband and mobile development have an adverse effect on CO2 emissions. The finding further reveals that the broadband indicator negatively affects CO2 emissions in all OBRI regions except South Asia. Similarly, the mobile use indicator protects the environmental quality in all OBRI regions except MENA (Middle East and North Africa) and Central Asia. Regarding country-wise analysis, broadband has alleviated the pollution level in 21 countries, while mobile has alleviated it in 15 countries. Moreover, economic growth is responsible to increase pollution levels in all panels and regions except Europe. Besides, the results highlight that higher FDI reduces environmental pollution whereby, the pollution halo hypothesis is supported to hold for all OBRI panels and regions except MENA countries. Based on the empirical findings, the policymakers and governments of these economies should design policies to grow smarter cities, transportation systems, electrical grids, industrial processes, and energy-saving production through ICT development on a macro level.

Analyzing the Impact of Governance, Environment and Trade on Inward FDI: A Case of Cambodia, Thailand and Vietnam from ASEAN

“…It is important to remember that the adverse effects of economic expansion on foreign direct investment are not consistent across all nations; rather, they are unique to the conditions that prevail in each one. The negative effects of these factors can be mitigated by governments by resolving infrastructural restrictions, supporting environmentally friendly practices, guaranteeing social inclusion, and preserving macroeconomic stability (Jahanger and Usman, 2022;Iqbal et al, 2023). Even in the face of the obstacles that come along with rapid economic expansion, the provision of a favorable investment climate that includes transparent rules, an efficient bureaucracy, and strong governance systems may assist attract and keep FDI (Appiah et al, 2023;Rao et al, 2023).…”

“…In this context, FDI's source, destination, and effects on the country are major subjects of interest and attention (Madani, 2017;Mizirak and Altıntaş, 2018). Also, the endogenous growth theory has suggested that inward FDI plays a crucial role in economic development of emerging economies even higher FDI also helps to reduce carbon emissions (Jahanger and Usman, 2022). Some countries have been fortunate in attracting inward FDI flows, however, others face challenges in this process (Sabir et al, 2019).…”

Achieving SDG-13 in the Era of Conflicts: The Roles of Economic Growth and Government Stability

“…Although studies continue to focus on CO 2 emissions (Jahanger & Usman, 2022; Liu et al, 2022, Suki et al, 2022; Zheng et al, 2022), recent literature has found EF to be a more comprehensive indicator for simultaneously assessing air, water, and soil pollution (Sharif et al, 2021, Pata & Hizarci, 2022). EF tracks the ecological assets needed to produce the natural resources consumed by humanity and sequester the waste.…”

Do Renewable Energy and the Real Estate Market Promote Environmental Quality in South Africa: Evidence from the Bootstrap ARDL Approach

“…Panel data analysis and time series have both been used in studies to undertake research. For panel data analysis, see [42][43][44][45][46][47]. Between 1995 and 2011, Apergis et al [48] examined the link between renewable energy and CO 2 emissions in Sub-Saharan Africa (SSA).…”