Digitalization and Environmental Sustainability: Evidence from Selected BRICS Economies

Abstract

Information and communication technology (ICT) has become a dominant tool for disseminating information and knowledge in the 21st century by
enabling faster communication, making research easy, facilitating skill acquisition, making international collaborations much easier, and acting as a catalyst for business operations. However, the use of ICT has raised environmental concerns, due to the increased consumption of ICT. This study examined the effect of ICT on carbon emissions in selected BRICS economies between 2009 and 2022. To adopt the appropriate estimation techniques, panel unit tests (LLC and IPS) were conducted. The tests revealed a mixed sequence of integrations between the variables, i.e. I (0) and I (1). This necessitates the use of panel ARDL estimation techniques. Using the PMG (pooled mean group) estimator, the panel ARDL was selected as the appropriate model for this study. The FMOLS (fully modified ordinary least squares) and FE (Fixed effects) methods were also utilized in this study as part of the robustness assessment. The findings from the panel long-run ARDL reveal that ICT, national output, and financial development increase emissions, while innovation reduces them. Furthermore, the findings from FMOLS and FE confirm the results obtained from ARDL. Therefore, this study recommends using green
technology to achieve net-zero emissions, reducing our digital carbon footprint on an individual and societal level, and scaling adaptation while reducing global emissions as a means of improving environmental sustainability within BRICS nations.