Does ICT diffusion lead to energy efficiency and environmental sustainability in emerging Asian economies?

The role of information and communication technology (ICT) is imperative in the transformation of the world. ICT is directly affecting all the sectors of the whole economy. Thus, the present study is determined to investigate the effect of ICT on energy efficiency and environmental sustainability in emerging Asian economies from 1990 to 2019. The panel augmented autoregressive distributed lag-pooled mean group approach has been used for empirical investigation. Two separate models have been designed to attain the empirical consensus. ICT is measured through two proxies namely broadband subscriptions (internet) and mobile cellular subscriptions (mobile). Results show that internet and mobile upsurge the energy efficiency in the long run. However, internet and mobile have a reducing impact on carbon emissions in the long run. While FDI enhances energy efficiency and reduces carbon emissions inferring that environmental efficiency improves in the long run. The study suggests that policymakers must be aware of the impact of ICT on energy efficiency and environmental quality and regulate their manufacturers to enable the amalgamation of ICT into users' routines.

Automated summary

The study found that Internet and mobile communication technologies can improve energy efficiency in the long run, but have a reducing effect on carbon emissions. Foreign direct investment has a positive impact on improving energy efficiency and reducing carbon emissions, and is also important for long-term improvements in environmental efficiency.