ICT and Sustainable Futures in Emerging Economies: The Roles of Renewable Energy and Green Growth in the Load Capacity Factor
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Abstract
Over the past 20 years, it has been widely recognized that there is a noticeable downward trend in environmental quality indicators of emerging economies. As a result, improving environmental quality has become a key issue for researchers and policymakers in these countries. In this context, the load capacity factor model considers renewable energy usage, ICT, industrialization, aging, and green growth as the main drivers. Thus, this study analyzes the drivers of environmental quality in emerging economies between 1995 and 2021 by applying new panel data techniques such as panel AMG and Dumitrescu-Hurlin bootstrap causality approaches. Our findings indicate the presence of cointegration between the series. Additionally, we find that renewable energy usage, ICT, aging and green growth contribute to improving environmental quality, while industrialization has a negative impact on environmental quality. The causality analysis provides supporting evidence for these findings. Therefore, our results offer valuable insights for policymakers in emerging economies on how to improve environmental quality.
Keywords
Abstract
Over the past 20 years, it has been widely recognized that there is a noticeable downward trend in environmental quality indicators of emerging economies. As a result, improving environmental quality has become a key issue for researchers and policymakers in these countries. In this context, the load capacity factor model considers renewable energy usage, ICT, industrialization, aging, and green growth as the main drivers. Thus, this study analyzes the drivers of environmental quality in emerging economies between 1995 and 2021 by applying new panel data techniques such as panel AMG and Dumitrescu-Hurlin bootstrap causality approaches. Our findings indicate the presence of cointegration between the series. Additionally, we find that renewable energy usage, ICT, aging and green growth contribute to improving environmental quality, while industrialization has a negative impact on environmental quality. The causality analysis provides supporting evidence for these findings. Therefore, our results offer valuable insights for policymakers in emerging economies on how to improve environmental quality.
