Toward sustainable climate action in advanced economies: Linking information communication technology, technological innovation, economic complexity, and ecological footprint

Joshua Chukwuma Onwe, Solomon Prince Nathaniel and Mohd Arshad Ansari

Natural Resources Forum, 2025, vol. 49, issue 2, 1910-1930

Abstract: Information and communication technology (ICT), technological innovation, and renewable energy (REN) consumption have been proffered as solutions to the recent environmental tragedies in developed countries. In recent times, ICT diffusion and technological innovation have improved in G7 countries, but the same cannot be said of REN consumption. As such, this study examines the link between ICT, economic complexity, technological innovation, REN, and ecological footprint (EF) for G7 countries over the period 1990–2020. We use three variables (fixed telephone subscriptions [FTS], mobile cellular subscriptions [MCS], and individuals using the internet [IUI]) to represent ICT. The presence of cross‐sectional dependence guides the use of second‐generation econometric methods for slope heterogeneity, unit root, cointegration, and parameter estimation. The augment mean group (AMG) estimator and panel OLS techniques are applied to complement the method of moment quantile regression (MM‐QR) approach. The MM‐QR results suggest that REN consumption and technological innovation impede the EF across all quantile levels (0.1–0.9), whereas economic growth and economic complexity augment the EF in G7 countries. The ICT variables have heterogeneous effects on the EF, suggesting that the impact of ICT on the EF depends on the estimation techniques and proxy for the variable. In line with these outcomes, public policies directed toward funding technological innovation projects are recommended. The funding should specifically focus on environmentally friendly technologies that can guarantee complementarity between reduced environmental damage and increased economic growth.

Date: 2025
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https://doi.org/10.1111/1477-8947.12468

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Persistent link: https://EconPapers.repec.org/RePEc:wly:natres:v:49:y:2025:i:2:p:1910-1930

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