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How does Digital Technology Influence Natural Resource Use: A Global Perspective

Tomiwa Adebayo, Victoria Olushola Olanrewaju (), Oktay Özkan () and Sajid Ali ()
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Victoria Olushola Olanrewaju: European University of Lefke
Oktay Özkan: Tokat Gaziosmanpasa University
Sajid Ali: Bahauddin Zakariya University

Computational Economics, 2025, vol. 66, issue 4, No 29, 3567-3589

Abstract: Abstract The integration of digital technology has become a critical determinant in reshaping the dynamics of natural resource rent on a global scale. This study examines the intricate relationship between digital technology and its impact on the economic rent derived from natural resource utilization and extraction within the framework of the global economy. Utilizing data spanning from 1990 to 2021, this research employs wavelet quantile-on-quantile regression to capture the complex interdependencies across various quantiles and periods. To the best of the authors' knowledge, this study represents the inaugural empirical investigation into this specific interrelationship, thereby addressing a significant gap in the existing literature. The findings reveal that digital technology, encompassing internet usage and mobile cellular subscriptions, negatively influences total natural resource rent. Moreover, digital technology reduces disaggregated natural resource rents, spanning oil, coal, natural gas, minerals, and forests. These results, corroborated by the findings from wavelet quantile regression, underline the need for global policymakers to prioritize initiatives to foster sustainable digitalization practices. This entails advocating for developing and adopting digital technologies that prioritize resource efficiency and conservation. Graphical Abstract

Keywords: Digital technology; Ecological sustainability; Economic development; Natural resource use; Global economy (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10614-024-10800-4

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