IDEAS home Printed from https://ideas.repec.org/a/spr/minecn/v38y2025i3d10.1007_s13563-025-00522-w.html

Linkages between digitalization and carbon emissions generated from natural resource-based energy sources: empirical evidence from Asia

Author

Listed:
  • Sana Naseem

    (Al Yamamah University)

Abstract

Due to relying heavily on unclean primary natural resources (fossil fuels), power sectors in Asia are regarded as highly pollution-intensive. However, considering the importance of establishing environmental sustainability and combating climatic vulnerability, it is pertinent for Asian countries to figure out solutions through which their power sector-related emissions can be eliminated over time. On that note, this study evaluates the impacts of digitalization and various other macroeconomic factors on carbon-dioxide emissions generated from power sectors in 16 Asian countries. Accordingly, using data from 2008 to 2022 and utilizing robust panel estimators, it is found that digitalization is a key mechanism for abating power sector-related emissions across Asia. Moreover, the results also endorse that renewable energy transition, international trade participation, and corruption control are additional emission-abating factors for the selected Asian countries. Contrarily, natural resource dependency, interestingly, is not found to directly affect such emissions, while financial development is deemed responsible for inflating the power sector-related emission figures in the long-run. Further, these results exhibit regional variations across cohorts of South, Southeast, and Central/Eastern Asian countries. Nevertheless, in the majority of cases, the results appear robust after considering alternative proxies of digitalization within the estimation processes. Hence, policymakers are suggested to consider these findings when designing future emission-abating policies that are relevant for making Asian power sectors carbon neutral.

Suggested Citation

  • Sana Naseem, 2025. "Linkages between digitalization and carbon emissions generated from natural resource-based energy sources: empirical evidence from Asia," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 38(3), pages 683-699, September.
    • Handle: RePEc:spr:minecn:v:38:y:2025:i:3:d:10.1007_s13563-025-00522-w
    DOI: 10.1007/s13563-025-00522-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13563-025-00522-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13563-025-00522-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Hanif, Imran & Aziz, Babar & Chaudhry, Imran Sharif, 2019. "Carbon emissions across the spectrum of renewable and nonrenewable energy use in developing economies of Asia," Renewable Energy, Elsevier, vol. 143(C), pages 586-595.
    2. Jianda Wang & Jun Zhao & Kangyin Dong & Xiucheng Dong, 2023. "How does the internet economy affect CO2 emissions? Evidence from China," Applied Economics, Taylor & Francis Journals, vol. 55(4), pages 447-466, January.
    3. Shahbaz, Muhammad & Wang, Jianda & Dong, Kangyin & Zhao, Jun, 2022. "The impact of digital economy on energy transition across the globe: The mediating role of government governance," Renewable and Sustainable Energy Reviews, Elsevier, vol. 166(C).
    4. Bai, Wuliyasu & Zhang, Long & Lu, Shengfang & Ren, Jingzheng & Zhou, Zhiqiao, 2023. "Sustainable energy transition in Southeast Asia: Energy status analysis, comprehensive evaluation and influential factor identification," Energy, Elsevier, vol. 284(C).
    5. Tore Bersvendsen & Jan Ditzen, 2021. "Testing for slope heterogeneity in Stata," Stata Journal, StataCorp LLC, vol. 21(1), pages 51-80, March.
    6. Dustin Chambers & Jonathan Munemo, 2019. "Natural Resource Dependency and Entrepreneurship: Are Nations with High Resource Rents Cursed?," Journal of International Development, John Wiley & Sons, Ltd., vol. 31(2), pages 137-164, March.
    7. Ivan Diaz-Rainey & Jan Corfee-Morlot & Ulrich Volz & Ben Caldecott, 2023. "Green finance in Asia: challenges, policies and avenues for research," Climate Policy, Taylor & Francis Journals, vol. 23(1), pages 1-10, January.
    8. Arshad Ali & Magdalena Radulescu & Daniel Balsalobre-Lorente, 2023. "A dynamic relationship between renewable energy consumption, nonrenewable energy consumption, economic growth, and carbon dioxide emissions: Evidence from Asian emerging economies," Energy & Environment, , vol. 34(8), pages 3529-3552, December.
    9. Wang, Bo & Wang, Jianda & Dong, Kangyin & Dong, Xiucheng, 2023. "Is the digital economy conducive to the development of renewable energy in Asia?," Energy Policy, Elsevier, vol. 173(C).
    10. Herwartz, H. & Siedenburg, F., 2008. "Homogenous panel unit root tests under cross sectional dependence: Finite sample modifications and the wild bootstrap," Computational Statistics & Data Analysis, Elsevier, vol. 53(1), pages 137-150, September.
    11. Li, Jiaman & Dong, Kangyin & Wang, Kun & Dong, Xiucheng, 2023. "How does natural resource dependence influence carbon emissions? The role of environmental regulation," Resources Policy, Elsevier, vol. 80(C).
    12. Edquist, Harald & Bergmark, Pernilla, 2024. "How is mobile broadband intensity affecting CO2 emissions? – A macro analysis," Telecommunications Policy, Elsevier, vol. 48(2).
    13. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    14. John C. Driscoll & Aart C. Kraay, 1998. "Consistent Covariance Matrix Estimation With Spatially Dependent Panel Data," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 549-560, November.
    15. M. Hashem Pesaran & Yimeng Xie, 2021. "A Bias-Corrected CD Test for Error Cross-Sectional Dependence in Panel Data Models with Latent Factors," CESifo Working Paper Series 9234, CESifo.
    16. Surender Mor & Ranjan Aneja & Sonu Madan & Mahesh Ghimire, 2024. "Kyoto Protocol and Paris Agreement: Transition from Bindings to Pledges – A Review," Millennial Asia, , vol. 15(4), pages 690-711, December.
    17. Maxwell Chukwudi Udeagha & Marthinus Christoffel Breitenbach, 2023. "The Role of Financial Development in Climate Change Mitigation: Fresh Policy Insights from South Africa," Biophysical Economics and Resource Quality, Springer, vol. 8(1), pages 1-34, March.
    18. Ashraf, Muhammad Zubair & Wei, Wei & Usman, Muhammad & Mushtaq, Shahid, 2024. "How can natural resource dependence, environmental-related technologies and digital trade protect the environment: Redesigning SDGs policies for sustainable environment?," Resources Policy, Elsevier, vol. 88(C).
    19. Wen-Cheng Lu, 2018. "The impacts of information and communication technology, energy consumption, financial development, and economic growth on carbon dioxide emissions in 12 Asian countries," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(8), pages 1351-1365, December.
    20. Rahman, Mohammad Mafizur & Alam, Khosrul, 2022. "Effects of corruption, technological innovation, globalisation, and renewable energy on carbon emissions in Asian countries," Utilities Policy, Elsevier, vol. 79(C).
    21. Namahoro, J.P. & Wu, Q. & Zhou, N. & Xue, S., 2021. "Impact of energy intensity, renewable energy, and economic growth on CO2 emissions: Evidence from Africa across regions and income levels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 147(C).
    22. Zheng Guang‐Wen & Muntasir Murshed & Abu Bakkar Siddik & Md Shabbir Alam & Daniel Balsalobre‐Lorente & Haider Mahmood, 2023. "Achieving the objectives of the 2030 sustainable development goals agenda: Causalities between economic growth, environmental sustainability, financial development, and renewable energy consumption," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(2), pages 680-697, April.
    23. Muhammad Farhan Basheer & Saeed Ahamd Sabir & Saira Ghulam Hassan, 2024. "Financial development, globalization, energy consumption, and environmental quality: Does control of corruption matter in South Asian countries?," Economic Change and Restructuring, Springer, vol. 57(3), pages 1-29, June.
    24. Siew Pyng Christine Chong & Chwee Ming Tee & Seow Voon Cheng, 2020. "Political institutions and the control of corruption: a cross-country evidence," Journal of Financial Crime, Emerald Group Publishing Limited, vol. 28(1), pages 26-48, July.
    25. Zhao, Jing & Sinha, Avik & Inuwa, Nasiru & Wang, Yihan & Murshed, Muntasir & Abbasi, Kashif Raza, 2022. "Does structural transformation in economy impact inequality in renewable energy productivity? Implications for sustainable development," Renewable Energy, Elsevier, vol. 189(C), pages 853-864.
    26. Nguyen, Tran Thai Ha & Tu, Yu-Te & Diep, Gia Luat & Tran, Trung Kien & Tien, Nguyen Hoang & Chien, FengSheng, 2023. "Impact of natural resources extraction and energy consumption on the environmental sustainability in ASEAN countries," Resources Policy, Elsevier, vol. 85(PA).
    27. Naima Sadaoui & Lotfi Zabat & Habib Sekrafi & Mehdi Abid, 2024. "The moderating role of natural resources between governance and CO2 emissions: Evidence from MENA countries," Energy & Environment, , vol. 35(3), pages 1597-1615, May.
    28. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    29. Paul Terhemba Iorember & Solomon Gbaka & Gylych Jelilov & Nargiza Alymkulova & Ojonugwa Usman, 2022. "Impact of international trade, energy consumption and income on environmental degradation in Africa's OPEC member countries," African Development Review, African Development Bank, vol. 34(2), pages 175-187, June.
    30. Bashir Muhammad & Sher Khan, 2021. "Understanding the relationship between natural resources, renewable energy consumption, economic factors, globalization and CO2 emissions in developed and developing countries," Natural Resources Forum, Blackwell Publishing, vol. 45(2), pages 138-156, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jiao Jingren & Helmut Yabar & Takeshi Mizunoya, 2025. "Impact of Digitalization on Carbon Emissions in Guangdong’s Manufacturing Sector: An Input–Output Perspective," Sustainability, MDPI, vol. 17(16), pages 1-15, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tunahan Haciimamoglu & Oguzhan Sungur & Korkmaz Yildirim & Mustafa Yapar, 2025. "Rethinking the Climate Change–Inequality Nexus: The Role of Wealth Inequality, Economic Growth, and Renewable Energy in CO 2 Emissions," Sustainability, MDPI, vol. 17(8), pages 1-19, April.
    2. Muntasir Murshed, 2026. "Addressing the trade-off between natural resource dependence and environmental sustainability in MENA countries: the role of energy productivity improvement," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 28(1), pages 489-515, January.
    3. Busayo Victor Osuntuyi & Hooi Hooi Lean, 2023. "Moderating Impacts of Education Levels in the Energy–Growth–Environment Nexus," Sustainability, MDPI, vol. 15(3), pages 1-18, February.
    4. Kaewnern, Hathaipat & Wangkumharn, Sirikul & Deeyaonarn, Wongsathon & Yousaf, Abaid Ullah & Kongbuamai, Nattapan, 2023. "Investigating the role of research development and renewable energy on human development: An insight from the top ten human development index countries," Energy, Elsevier, vol. 262(PB).
    5. Chien, Fengsheng & Anwar, Ahsan & Hsu, Ching-Chi & Sharif, Arshian & Razzaq, Asif & Sinha, Avik, 2021. "The role of information and communication technology in encountering environmental degradation: Proposing an SDG framework for the BRICS countries," Technology in Society, Elsevier, vol. 65(C).
    6. Danish, & Baloch, Muhammad Awais & Wang, Bo, 2019. "Analyzing the role of governance in CO2 emissions mitigation: The BRICS experience," Structural Change and Economic Dynamics, Elsevier, vol. 51(C), pages 119-125.
    7. Festus Victor Bekun & Gizem Uzuner & Muhammad Saeed Meo & Ashutosh Yadav, 2025. "Another look at energy consumption and environmental sustainability target through the lens of the load capacity factor: Accessing evidence from MINT economies," Natural Resources Forum, Blackwell Publishing, vol. 49(3), pages 2349-2366, August.
    8. Badeeb, Ramez Abubakr & Wang, Bo & Zhao, Jun & Khan, Zeeshan & Uktamov, Khusniddin Fakhriddinovich & Zhang, Changyong, 2023. "Natural resources extraction and financial inclusion: Linear and non-linear effect of natural resources on financial sector," Resources Policy, Elsevier, vol. 85(PA).
    9. Muntasir Murshed, 2025. "The relevance of scaling technological innovation finances for evading the carbon curse of mineral resources: Insights from Latin America and the Caribbean," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 38(1), pages 159-175, March.
    10. Muhammad Aqib Khursheed & José Alberto Fuinhas & Ida Verna, 2026. "The impact of digitalization, renewable energy, and natural resources on environmental quality: the role of government expenditure in EU27 countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 60(2), pages 4801-4831, April.
    11. Dai, Siwei & Su, Mengying & Liu, Yandong & Xu, Zhaoyi, 2023. "Digital economy, resource richness, external conflicts, and ecological footprint: Evidence from emerging countries," Resources Policy, Elsevier, vol. 85(PB).
    12. Li, Zihao & Yuan, Bingbing & Bai, Tingting & Dong, Xu & Wu, Haitao, 2024. "Shooting two hawks with one arrow: The role of digitization on the coordinated development of resources and environment," Resources Policy, Elsevier, vol. 90(C).
    13. Murshed, Muntasir, 2024. "Can resolving geopolitical tensions help South Asian countries elude the carbon curse of natural resources?," Resources Policy, Elsevier, vol. 90(C).
    14. Qiong Deng & Muhammad Usman & Muhammad Irfan & Mohammad Haseeb, 2025. "The role of financial inclusion and tourism in tackling environmental challenges of industrialization and energy consumption: Redesigning Sustainable Development Goals policies," Natural Resources Forum, Blackwell Publishing, vol. 49(3), pages 3112-3139, August.
    15. Muntasir Murshed & A. K. M. Atiqur Rahman, 2025. "The importance of settling geopolitical disputes in neutralizing the carbon curse of natural resources: evidence from South and Southeast Asia," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 38(1), pages 143-158, March.
    16. Alvarado, Rafael & Tillaguango, Brayan & Murshed, Muntasir & Ochoa-Moreno, Santiago & Rehman, Abdul & Işık, Cem & Alvarado-Espejo, Johana, 2022. "Impact of the informal economy on the ecological footprint: The role of urban concentration and globalization," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 750-767.
    17. Anwar, Ahsan & Siddique, Muhammad & Eyup Dogan, & Sharif, Arshian, 2021. "The moderating role of renewable and non-renewable energy in environment-income nexus for ASEAN countries: Evidence from Method of Moments Quantile Regression," Renewable Energy, Elsevier, vol. 164(C), pages 956-967.
    18. Zhao, Dengfeng & Lin, Jingting & Bashir, Muhammad Adnan, 2024. "Analyze the effect of energy efficiency, natural resources, and the digital economy on ecological footprint in OCED countries: The mediating role of renewable energy," Resources Policy, Elsevier, vol. 95(C).
    19. Sahu, Anjan Kumar & Mahalik, Mantu Kumar, 2025. "From policy to practice: The mediating role of innovation in renewable energy adoption in OECD nations," Innovation and Green Development, Elsevier, vol. 4(3).
    20. Piana Monsur Mindia & Md Qamruzzaman & Nusrat Farzana, 2024. "Exploring the Impact of Good Governance and Innovation on Export Earnings, Clean Energy, Remittances, and Zero Carbon Emissions in Sub-Saharan African Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 265-284, July.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:minecn:v:38:y:2025:i:3:d:10.1007_s13563-025-00522-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.