Shaping sustainable futures in BRICS-T economies: The role of digitalization with moderating effects of green technology innovation and financial inclusion

Tayyaba Rani, Feng Wang, Syed Aziz Ur Rehman and Muhammad Asif Amjad

Technology in Society, 2025, vol. 82, issue C

Abstract: Every country struggles to maintain a balance between environmental sustainability and economic prosperity. Rapid industrialization and urbanization have exacerbated ecological degradation, making innovative approaches essential for sustainable development. Although digitalization and green innovation potentially improve ecological outcomes, their impact on BRICS-T countries must be explored. This study addresses this gap by analyzing how digitalization, green technology innovation, and financial inclusion relate to environmental degradation in BRICS-T nations by employing advanced econometric techniques such as the Non-linear KSS Unit Root Test, Method of Moment Quantile Regression (MMQR). The study's findings indicate that digitalization, mainly through data centers and networks, demands substantial energy, primarily from fossil fuel sources, leading to increased emissions. However, green innovation consistently reduces emissions across all quantiles. Increased financial inclusion is associated with higher emissions, particularly at lower and middle quantiles. The interaction between digitalization and green innovation results in a reduction of emissions across all quantiles. Conversely, the combined effect of financial inclusion and digitalization leads to higher emissions, especially in BRICS-T economies. These insights are crucial for BRICS-T nations as they seek to achieve sustainable development goals through technological advancements.

Keywords: Green innovation; Digitalization; Sustainability; Emissions (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:teinso:v:82:y:2025:i:c:s0160791x25000697

DOI: 10.1016/j.techsoc.2025.102879

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