Examining the Influence of ICT on Carbon Emissions in Emerging Economies

Jun Wen, Samia Khalid, Hamid Mahmood, Khorshed Alam and Muhammad Zakaria

Structural Change and Economic Dynamics, 2025, vol. 74, issue C, 353-360

Abstract: This study explores the influence of digitalization of the economy on carbon emissions in emerging economies (BRICS) by taking in account the impact of green technology. The empirical results are obtained by using the sophisticated econometric techniques of Feasible Generalized Least Squares (FGLS) and Panel Corrected Standard Errors (PCSE). The findings reveal that adoption of digital technology in the economy improves the environment by lowering carbon emissions. The intuition is that digital innovations encourage a move towards more environmentally friendly production methods and increase energy efficiency across a range of industries. Green technology enhances this effect by serving as a mediator. The findings also show that high income level and globalization lowers emissions while urbanization tends to raise carbon emissions. Based on the empirical results, the study recommends that BRICS countries should emphasize investments in the digitalization of the economy and green technology incentives since clean technology and resource management may drastically cut emissions.

Keywords: Digitalization; Green technology; Carbon emissions; FGLS; PCSE (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:74:y:2025:i:c:p:353-360

DOI: 10.1016/j.strueco.2025.03.015

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