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Paper Details


Title
The role of internet services in carbon productivity enhancement and environmentally-sustainable economic growth

Author
, Muntasir Murshed,

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Abstract

Climatic vulnerability necessitates South Asian countries to become environmentally sustainable, especially by being more carbon productive. Precisely, it is imperative for these countries to simultaneously enhance economic output while reducing carbon emissions so that economic growth does not induce environmental degradation. On that note, this study utilizes data from seven South Asian countries to assess whether making more use of internet services would assist them to become more carbon productive in the long-run. Though past studies have emphasized how internet use separately affects economic growth and environmental sustainability in South Asia, not much information is available on how internet use impacts economic growth and environmental sustainability across this region. Accordingly, by addressing this literature gap, this study probes whether internet use-based digitalization can allow the selected South Asian countries to achieve environmentally-sustainable economic growth. The analytical period considered in this study spans from 2002 to 2021 and involves the use of advanced panel data-related estimators which can deal with cross-sectionally reliant heterogenous panel data. Overall, from the findings, it is apparent that if the number of users of internet services goes up, South Asian countries could become more carbon productive. Hence, this finding duly endorses that by digitalizing the economies of South Asian countries via internet penetration-based channels, their economic growth processes can be decoupled from large-scale emissions of carbon-dioxide. Accordingly, internet development is a critically important issue for South Asian policymakers who are authorized to design low-carbon economic growth strategies for the future. Among other findings, more renewable energy consumption is also found to enhance carbon productivity, while betterment of governance quality, urbanization, FDI influx, and greater reliance on natural resources are deemed as carbon productivity-inhibiting factors for South Asian countries. Furthermore, the results remain robust when alternate estimation methods and different carbon-productivity- and internet use-related proxies are considered. Therefore, these findings are crucial for South Asian policymakers to design action plans through which economies from this region can be made carbon productive and more environmentally-sustainable, especially by developing internet infrastructures, strengthening environmental governance, planning green urbanization mechanisms, easing scope of foreign investments in clean industries, undergoing renewable energy transition, and lessening unclean natural resource reliance.


Keywords

Journal or Conference Name
Journal of Environmental Management

Publication Year
2025

Indexing
scopus