Digital technologies are increasingly recognised as essential tools for advancing environmental sustainability by enhancing energy efficiency and optimising resource use. This study examines the long-term relationships among information and communication technology (ICT), renewable and non-renewable energy consumption, healthcare expenditure, and economic growth, in relation to CO₂ emissions, across 35 OECD countries from 2000 to 2019. Utilising second-generation panel techniques, such as the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) estimators, the findings indicate that the advancement of ICT and the consumption of renewable energy play a significant role in reducing long-term carbon emissions. Conversely, the relationship between economic growth and consumption of non-renewable energy shows an increase in CO₂ emissions, highlighting the environmental toll of growth reliant on fossil fuels. Moreover, the relationships between ICT and healthcare spending, and between ICT and consumption of non-renewable energy, help reduce emissions, whereas the link between ICT and economic growth is not statistically significant. The causality analysis reveals bidirectional relationships among CO₂ emissions and factors such as ICT, renewable energy, healthcare expenditure, and non-renewable energy consumption. The results highlight the critical need to combine digital innovation with clean energy approaches to foster environmentally sustainable economic growth in OECD countries.
Bhasin et al. (Sun,) studied this question.
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