Does information and communication technology matter for the environmental sustainability paradigm? Evidence from MENA countries

PurposeThe present study aimed to investigate the relationship between the imports and exports of information and communication technology (ICT) and environmental sustainability in MENA countries from 2012 to 2021.Design/methodology/approachThe study used three estimators to increase robustness and overcome the heterogeneity and endogeneity issues of the dynamic panel data. Specifically, the study used the study used fixed effect (FE), feasible generalised least squares (FGLS), instrumental variables of two-stage least squares (IV-2SLS) regression and instrumental variables of generalised method of moments (IV-GMM) regression.FindingsThe study findings revealed significant positive relationships between exports and imports of ICT and renewable energy consumption. Meanwhile, significant negative relationships existed between imports and exports of ICT and urban population growth. This study highlights the environmental costs of rapid growth in this sector. At the same time, the positive relationship with renewable energy consumption suggests that efforts should be made to mitigate these impacts through sustainable practices and investments in cleaner energy sources.Originality/valueThe study highlighted an underexplored intersection in MENA countries and combined the effects of ICT trade (exports and imports) and environmental sustainability. Additionally, the study assesses whether ICT adoption in trade facilitates greener, renewable energy consumption and urban development in a sustainable environment. MENA countries face unique environmental challenges for carbon-intensive economies in a timely and policy-relevant manner, and this study could offer new insights for policymakers on leveraging ICT trade tools to advance both economic and environmental goals.