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Asymmetric impact of information and communication technologies on environmental quality: analyzing the role of financial development and energy consumption

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  • Khurram Shehzad

    (Southeast University)

  • Umer Zaman

    (Woosong University)

  • Mahmood Ahmad

    (University of International Business and Economics)

  • Xiaoxing Liu

    (Southeast University)

Abstract

The development of information and communication technologies (ICT) positively contributes to economic growth; however, their environmental implications cannot be ignored. Therefore, it is imperative to investigate the impact of ICT, energy consumption, economic growth, and financial development on the air quality in Pakistan. Drawing on the data set from 1976 to 2018, we employed Nonlinear Autoregressive Distributed Lag model. The results revealed that there is a substantial presence of asymmetric cointegration between ICT and CO2 emissions. The empirical results unfold that positive shocks in ICT negatively affect CO2 emissions, implying that an increase in ICT brings a decrease in CO2 emission; negative shocks in ICT publicized a negative association with CO2 emissions, inferring that a decrease in ICT will bring an upsurge in CO2 emissions. Moreover, on the dark side, energy consumption and financial development degrade the environmental quality by increasing the CO2 emissions in Pakistan. Additionally, the existence of the Environmental Kuznets Curve hypothesis in Pakistan was confirmed. Our key findings emphasize the importance of ICT development and several environmental implications in attaining the sustainable development goal.

Suggested Citation

  • Khurram Shehzad & Umer Zaman & Mahmood Ahmad & Xiaoxing Liu, 2022. "Asymmetric impact of information and communication technologies on environmental quality: analyzing the role of financial development and energy consumption," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 1761-1780, February.
    • Handle: RePEc:spr:endesu:v:24:y:2022:i:2:d:10.1007_s10668-021-01506-w
    DOI: 10.1007/s10668-021-01506-w
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    1. Charfeddine, Lanouar & Umlai, Mohamed, 2023. "ICT sector, digitization and environmental sustainability: A systematic review of the literature from 2000 to 2022," Renewable and Sustainable Energy Reviews, Elsevier, vol. 184(C).

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    More about this item

    Keywords

    CO2 emissions; ICT; Economic growth; Financial development; Energy consumption; Pakistan; NARDL;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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