Information and communication technology, economic globalization, and environmental sustainability in APEC nations: Insights from LCC and EKC hypotheses testing

Kong Ximei, Muhammad Qasim Javaid, Tanzeela Shams and Muhammad Sibt‐e‐Ali

Sustainable Development, 2025, vol. 33, issue 1, 878-903

Abstract: As the world grapples with pressing ecological issues, this study delves into the essential concept of environmental sustainability, following the sustainable development goal (SDG) 13, aiming to uncover pathways for a greener future. For this, the study examines the effects of information & communication technology (ICT) and economic globalization (ECG) on environmental sustainability (ENS) from a new angle, focusing on three ENS proxy variables; carbon dioxide emission (CO2e), ecological footprint (EFP), and load capacity factor (LCF), for better ecological assessment. Dissimilar to prior studies, the current study simultaneously tests the load capacity curve (LCC) and environmental Kuznets curve (EKC) hypotheses. The study employed advanced panel data estimation techniques along with causality tests, taking into account cross‐sectional dependence and slope heterogeneity for Asia‐Pacific Economic Cooperation (APEC) economies, for the period 1991–2020. The long‐run empirical outcomes reveal that information & communication technology, economic globalization, renewable energy consumption, and green financial development have the potential to enhance environmental sustainability; whereas industrialization has a detrimental influence over time. Further, the LCC and EKC hypotheses are supportable in APEC economies. Considering the overall findings there is a need for a favorable policy environment, that is APEC nations should bolster up the deployment of green ICT infrastructure; promote enhanced and collective efforts with global partners for ECG; expand the adoption of renewable energy; direct green financial development to areas of greatest benefit, and well‐managed industrialization as part of their environmental policies.

Date: 2025
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https://doi.org/10.1002/sd.3163

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Persistent link: https://EconPapers.repec.org/RePEc:wly:sustdv:v:33:y:2025:i:1:p:878-903

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