Does the digital economy have implications for environmental sustainability? Empirical evidence from Egypt

Document Type : Original Article

Author

Minya el Qamh Al Sharqia

Abstract

One of the sustainable development goals of Egypt’s Vision 2030 is to enhance environmental sustainability. Reducing CO2 emissions is the main objective of strengthening this sustainability, which is being worked on using developed digital technologies. Therefore, the digital economy and environmental sustainability are gaining significance and becoming more linked. Based on the argument that information and communication technologies (ICT) could serve as a tool to achieve low-carbon development, this study empirically investigates the relationship between CO2 emissions and ICT (the proxy indicator for the digital economy) in the context of GDP and renewable energy consumption (REC) in Egypt. Using the ARDL approach over the period 2000-2023, the results suggested that ICT has a substantial impact on reducing CO2 emissions, therefore emphasizing its positive environmental advantages. Also, the study outcomes supported the evidence that REC helps enhance environmental quality. Thus, energy-efficient ICT devices (i.e., smart applications) and other key inventions related to Internet use are required in Egypt to control CO2 emissions. Typically, Egypt would do much better to develop institutional and regulatory reforms for better environmental management than just trust that the digital economy and renewable energy consumption will automatically solve environmental problems.

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