| Literature DB >> 36231602 |
Abstract
In the current era of digital economy, the role of information communication and technology (ICT) and economic complexity are important for controlling environmental unsustainability and formulating policies to deal with ecological concerns. However, the relationship between digital economy and environment has been studied widely; nevertheless, the relationship between ICT-based digital economy, economic complexity, and ecological footprint has not been studied extensively. Therefore, the aim of current study is to fill the existing gap by investigating the relationship between ICT, economic complexity, and ecological footprint in the case of G-seven (digital) economies. Furthermore, the past research studies were usually based on carbon emissions to measure environmental sustainability, while this study fills the gap using ecological footprint as a proxy for environmental degradation. By using the panel data over the period of 2001-2018 for G-seven economies, this study performs first-generation as well as second-generation unit root testing methods. Findings of both Pesaran's and B&P's cross-sectional dependence testing approaches confirm the presence of cross-sectional dependence across all G-seven economies. The empirical findings of cointegration (Pedroni and Kao) tests verify a stable long-run association between ecological footprint, ICT import, ICT export, economic complexity, economic growth, and other control grouped variables. The empirical evidence obtained from the fully modified OLS model suggests that ICT export, economic complexity, and economic growth enhance the intensity of ecological footprint, while ICT import, research and development (RD), and trade are helpful in reducing ecological footprint in G-seven economies. These empirical findings obtained are verified by pooled mean group-ARDL (PMG-ARDL) methodologies and confirm that there is no inconsistency in the results. On the basis of these results, some policy implications for ecological footprint, ICT, and economic complexity are discussed.Entities:
Keywords: G-seven; ICT; digital economy; ecological footprint; economic complexity; economic growth; environmental sustainability
Mesh:
Substances:
Year: 2022 PMID: 36231602 PMCID: PMC9566091 DOI: 10.3390/ijerph191912301
Source DB: PubMed Journal: Int J Environ Res Public Health ISSN: 1660-4601 Impact factor: 4.614
Figure 1The Conceptual framework of the model. Source: authors’ own derivations.
Acronym, measuring unit, nature, and source of the variables.
| Variables | Abbreviations | Measures | Nature | Source |
|---|---|---|---|---|
| Ecological footprint | EcoFP | Per capita ecological footprint (in global hectares) | Main | Global Footprint Network (GFN) |
| Informational communication and technology (export) | ICTexp | Export of ICT-related goods | Main | World Development Indicators (WDI) |
| Informational communication and technology (import) | ICTimp | Import of ICT-related goods | Main | WDI |
| Economic Complexity (index) | ECI | The production composition face of a country by installing and including the information of their variety of range (the number of exported product) | Main | ALTAS of Economic Complexity |
| Economic growth | GDPpc | Gross domestic products per person (measure in current price of USD) | Main | WDI |
| Foreign Direct Investment | FDI | Net inflow of FDI (percentage of GDP) | Control | WDI |
| Research and Development | RD | Expenditure on research and development (percentage of GDP) | Control | WDI |
| Trade Ratio | TRA | Trade ratio in percentage of GDP | Control | WDI |
| Population | POP | People living per square kilometer of land area (population density) | Control | WDI |
Summary statistics of the variables.
| Variables | lnEcoFP | lnICTexp | lnICTimp | lnGDPpc | lnECI | lnFDI | lnPOP | lnTRA | lnRD |
|---|---|---|---|---|---|---|---|---|---|
| Mean | 1.777 | 1.713 | 2.207 | 10.580 | 0.439 | 0.296 | 4.541 | 3.892 | 0.739 |
| Max | 2.324 | 3.013 | 2.749 | 11.052 | 1.022 | 2.478 | 5.861 | 4.482 | 1.223 |
| Min | 1.430 | 0.512 | 1.569 | 9.927 | −0.616 | −6.393 | 1.241 | 2.973 | 0.039 |
| S.D. | 0.261 | 0.671 | 0.318 | 0.213 | 0.390 | 1.236 | 1.500 | 0.393 | 0.325 |
| Skew | 0.691 | 0.100 | −0.093 | −0.726 | −1.089 | −2.130 | −1.274 | −0.689 | −0.422 |
| Kurt | 2.109 | 2.111 | 2.032 | 3.693 | 3.814 | 10.796 | 3.240 | 2.338 | 2.198 |
| JB | 14.20 | 4.353 | 5.100 | 13.600 | 28.419 | 397.97 | 34.39 | 12.292 | 7.061 |
| Prob | 0.000 | 0.113 | 0.078 | 0.001 | 0.000 | 0.000 | 0.000 | 0.002 | 0.029 |
Note: the calculations are based on log values, the average value of the variable is denoted by Mean, Max is maximum value, Min is minimum, S.D. represents standard deviation of variables, Skew and Kurt indicates skewness and kurtosis in variables, JB and Prob represents Jarque & Bera tests and its probability values.
Cross-sectional dependence.
| Variables | Pesaran CD | B-P LM | H0 |
|---|---|---|---|
| lnEcoFP | 15.41 *** | 242.94 *** | Rejected |
| lnICTexp | 18.92 *** | 325.50 *** | Rejected |
| lnICTimp | 14.05 *** | 205.97 *** | Rejected |
| lnGDPpc | 14.88 *** | 233.47 *** | Rejected |
| lnECI | 12.44 *** | 177.70 *** | Rejected |
| lnFDI | 2.20 ** | 28.49 | Rejected at CD |
| lnPOP | 4.85 *** | 208.22 *** | Rejected |
| lnTRA | 8.08 *** | 209.89 *** | Rejected |
| lnRD | 5.09 *** | 202.06 *** | Rejected |
** (2 asterisks) denotes 5% and *** (3 asterisks) denotes 1% level of significance.
Panel unit root tests.
| Variable | Level | First Difference | Order | ||
|---|---|---|---|---|---|
| No Trend | with Trend | No Trend | with Trend | ||
| IPS (2003) | |||||
| lnEcoFP | 2.8165 | −0.4742 | −4.0519 *** | −3.0111 *** | 1st difference |
| lnICTexp | 0.4289 | 2.1736 | −3.2769 *** | −2.9242 *** | 1st difference |
| lnICTimp | −1.1060 | −0.7257 | −5.7259 *** | −4.4426 *** | 1st difference |
| lnGDPpc | −3.9456 *** | −1.8660 ** | - | - | Level |
| lnECI | −1.3804 * | 1.1144 | −4.2139 *** | −3.5384 *** | 1st difference |
| lnFDI | −2.4363 *** | −2.3832 *** | - | - | Level |
| lnPOP | 0.0863 | 2.5328 | 0.1925 | −1.3963 ** | 1st difference |
| lnTRA | −0.6490 | −0.9442 | −4.8942 | −3.8293 | 1st difference |
| lnINF | −2.3324 | −1.7257 | −3.0346 *** | −2.8874 *** | 1st difference |
| lnRD | 2.1801 | −1.4298 * | −3.2647 *** | −1.4815 ** | 1st difference |
| Cross-sectional IPS (CIPS) | |||||
| lnEcoFP | −2.361 ** | −2.129 | - | - | Level |
| lnICTexp | −1.934 | −2.254 | −3.886 *** | −3.950 *** | 1st difference |
| lnICTimp | −2.365 ** | −2.744 | - | - | Level |
| lnGDPpc | −1.399 | −1.998 | −3.101 *** | −3.028 *** | 1st difference |
| lnECI | −2.721 *** | −4.269 | - | - | Level |
| lnFDI | −3.232 *** | −3.292 ** | - | - | Level |
| lnPOP | −0.867 | −0.987 | −3.077** | −1.357 | 1st difference |
| lnTRA | −1.248 | −1.612 | −2.483 ** | −2.942 *** | 1st difference |
| lnRD | −2.160 | −2.359 | −4.133 *** | −4.141 *** | 1st difference |
* (1 asterisk) denotes 10%, ** (2 asterisks) denotes 5%, and *** (3 asterisks) denotes 1% level of significance.
Cointegration tests.
| Pedroni | Kao | |||
|---|---|---|---|---|
| Dimensions | ADF | |||
| Statistics | Within-Dim | Between-Dim | t-Statistics | Prob. |
| Panel v-stat | 1.691 ** | - | −3.7063 *** | 0.0001 |
| Panel PP-stat | −2.616 *** | - | - | - |
| Panel ADF-stat | −2.758 *** | - | - | - |
| Group PP-stat | - | −4.885 *** | - | - |
| Group ADF-stat | - | −3.858 *** | - | - |
** (2 asterisks) denotes 5%, and *** (3 asterisks) denotes 1% level of significance.
Estimations under the FM-OLS methodology.
| Variables | FM-OLS I | FM-OLS II | FM-OLS III |
|---|---|---|---|
| lnICTExp | 0.232 *** (0.024) | 0.260 *** (0.021) | 0.091 *** (0.011) |
| lnICTImp | −0.162 *** (0.046) | −0.172 *** (0.038) | −0.079 *** (0.018) |
| lnGDPpc | 0.130 *** (0.035) | 0.132 *** (0.029) | 0.193 *** (0.013) |
| lnECI | 0.271 *** (0.069) | 0.273 *** (0.057) | 0.071 *** (0.027) |
| lnFDI | −0.002 (0.004) | −0.005 (0.003) | −0.001 (0.002) |
| lnRD | −0.670 *** (0.073) | −0.779 *** (0.069) | −0.771 *** (0.031) |
| lnTRA | - | 0.160 *** (0.042) | −0.092 *** (0.010) |
| lnPOP | - | - | 2.044 *** (0.076) |
| Models’ statistics | |||
| R2 | 0.955199 | 0.956982 | 0.979361 |
| Adjusted-R2 | 0.949599 | 0.951095 | 0.976287 |
*** (3 asterisks) denotes 1% level of significance (the values in parenthesis represent standard error of the coefficient).
Estimations under PMG-ADRL methodology.
| Variables | PMG I | PMG II | PMG III |
|---|---|---|---|
| lnICTExp | 0.582 ***(0.071) | 0.694 *** (0.043) | 0.689 *** (0.055) |
| lnICTImp | −0.250 ***(0.105) | −0.475 *** (0.086) | −0.375 *** (0.088) |
| lnGDPpc | 0.166 ***(0.025) | 0.227 *** (0.030) | 0.237 *** (0.050) |
| lnECI | 0.416 ***(0.128) | 0.461 *** (0.111) | 0.221 *** (0.064) |
| lnFDI | 0.081 * (0.043) | 0.050 ** (0.001) | 0.018 (0.002) |
| lnRD | −0.177 *** (0.078) | −0.011 *** (0.044) | −0.588 *** (0.065) |
| lnTRA | - | 0.068 (0.058) | 0.188 *** (0.028) |
| lnPOP | - | - | 2.210 *** (0.153) |
| Models’ statistics | |||
| Dep: lags | 1 (fixed) | 1 (fixed) | 1 (fixed) |
* (1 asterisk) denotes 10%, ** (2 asterisks) denotes 5%, and *** (3 asterisks) denotes 1% level of significance (the values in parenthesis represent standard error of the coefficient).
Literature review’s summary in tabulated form.
| Authors | Regions | Time Periods | Methodology | Results |
|---|---|---|---|---|
| Relationship between ICT and environmental unsustainability | ||||
| [ | Caribbean and Latin American economies | 1995 to 2017 | Continuously upgraded and fully modified (CUP-FM) and Biased corrected (CUP-BC) models | The results obtained from the models suggest that ICT increases environmental sustainability by reducing carbon emission. |
| [ | Six ASEAN economies | 1995 to 2017 | Generalized method of moment (GMM), CUP-FM and CUP-BC models | ICT decreases the intensity of carbon emissions in ASEAN economies |
| [ | Tunisian economy | 1975 to 2014 | Autoregressive Distributed Lag (ARDL) | The suggested empirical evidence indicates statistically insignificant relationship between ICT and carbon emission in investigated region. |
| [ | Forty-four Sub-Sharan African economies | 2000 to 2012 | GMM | There is negative relationship between ICT and carbon emissions in targeted region. |
| [ | Twenty-one Sub-Saharan African economies | 1996 to 2014 | Panel Corrected Standard Error (PSCE) and Feasible Generalized Leas Square (FGLS) | ICT, energy consumptions, and carbon emissions have positive relationship in Sub-Saharan African countries |
| [ | Chinese provinces | 2001 to 2016 | Panel quantile regression model (PQR) | All measures of ICT support to decrease carbon emissions in Chinese economy |
| [ | European Union (EU) | 2001 to 2014 | ARDL-Pooled Mean Group (ARDL-PMG) | The use of internet (proxy for ICT) declines environmental sustainability. The findings also suggest that EU economies did not achieve the goal of green economy. |
| [ | Iran | 2002 to 2013 | Dynamic OLS | The findings suggest different results, such as ICT in services and transportation sector have negative effect on environmental degradation while, in the industrial sector, ICT and carbon emissions have positive relationship |
| [ | BRICS countries | 1990 to 2015 | CUP-BC and CUP-FM | The development of ICT significantly reduces carbon emissions in investigated region |
| [ | Nine Asian countries | 1990 to 2018 | ARDL | The emergence of ICT in economy significantly influences carbon emissions in all countries. |
| Relationship between ECI and environmental unsustainability | ||||
| [ | Portugal, Ireland, Italy, Greece, and Spain (PIIGS) economies | 1990 to 2019 | Dynamic OLS | The empirical findings suggest the nonlinear relationship between ECI and carbon emission. This relationship supports EKC hypothesis and N-shaped relationships in the long run. |
| [ | France | 1964 to 2014 | Dynamic OLS | The results show that ECI overturns the intensity of carbon emissions in France. The empirical evidence also supports the existence of U-shaped association between variables |
| [ | One hundred and eighteen developed and developing economies | 2002 to 2014 | System-GMM | ECI has significantly positive effect on carbon emissions in investigated region |
| [ | Twenty-eight OECD economies | 1990 to 2014 | Augmented Mean Group (AMG), Common correlated AMG (CCEMG), ARDL, Dynamic OLS, and FM-OLS | ECI reduces environmental unsustainability and can help to mitigate environmental effects |
| [ | G-seven economies | 1996 to 2019 | Fully modified ordinary least square (FM-OLS) and Dynamic OLS (DOLS) | The linear impact of ECI declines environmental sustainability, while the nonlinear (ECI2) supports the presence of EKC hypothesis |
| [ | EU | 1995 to 2016 | FM-OLS and DOLS | ECI significantly affects greenhouses green emissions in EU economies for the long run. |
| [ | United States of America | 1965 (Quarter-1) to 2017 (Quarter-4) | Quantile autoregression distributed lag (QARDL) model | ECI significantly increases EcoFP in USA. |