Exploring the Relationship between ICT Development and Environmental Degradation in Developing Countries

Abstract

The whole world is facing several environmental & climate change issues, deteriorating water quality, air pollution, loss of natural habitats, and waste management. Information and telecommunication technology (ICTs) is rapidly growing in developing countries. ICT improvement is the solution to the environmental degradation problem. The current study is focused on checking the relationship between ICT and environmental degradation.  Secondary data from 67 developing countries is used from 2000 to 2021. Developing countries are classified into four panels: low, lower-middle, upper-middle, and high-income countries. The environmental Kuznets Curve (EKC) hypothesis is used to check the relationship between ICT development and environmental degradation. The Hausman test is used for the selection of the most suitable model for regression analysis. Random Effect and Fixed Effect regression models are used for regression analysis. The results of the study demonstrated that an increase in ICT development will decrease CO₂ emissions and decrease environmental degradation. Therefore, the study concluded that the sustainable environment may be linked to greater development of the ICT sector. The study also suggested that developing countries should start smart industrial process, build electrical grid stations, and introduce online transportation systems to mitigate the issue of environmental degradation.