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ICT and education as determinants of environmental quality: The role of financial development in selected Asian countries

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  • Zafar, Muhammad Wasif
  • Zaidi, Syed Anees Haider
  • Mansoor, Sadia
  • Sinha, Avik
  • Qin, Quande

Abstract

Rising environmental concerns due to extensive energy consumption and carbon emission in the process of developing information communication and technology (ICT) cannot be overshadowed by its significant contribution in economic growth. This study is an attempt to explore long run influences of ICT and education on environmental quality. By incorporating the role of financial development, energy consumption and income into the function of carbon emissions, the results obtained by the continuously updated and fully modified (Cup-FM) test indicate that economic growth, education and energy consumption stimulates carbon emissions intensity in Asian countries (1990-2018). The second-generation unit root tests and Lagrange Multiplier (LM) bootstrap cointegration method investigate stationary properties and cointegration. Our findings suggest that investment in technology and financial markets require policymakers' attention as we have empirically established long-run inverse impacts of financial development and ICT on carbon emissions. Furthermore, the study suggests a focus on clean energy policy as the rising pollution levels due to fossil fuel hampers long-run productivity. This paper contributes to the existing literature by proposing that ICT-led economic policies may help solve environmental quality and economic growth issues.

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  • Zafar, Muhammad Wasif & Zaidi, Syed Anees Haider & Mansoor, Sadia & Sinha, Avik & Qin, Quande, 2022. "ICT and education as determinants of environmental quality: The role of financial development in selected Asian countries," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    • Handle: RePEc:eee:tefoso:v:177:y:2022:i:c:s0040162522000798
    DOI: 10.1016/j.techfore.2022.121547
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    Keywords

    Environmental Quality; ICT; Education; Financial development; Economic growth;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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