Exploring the Role of Information Communication Technology and Renewable Energy in Environmental Quality of South-East Asian Emerging Economies

Abstract

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We have extended the literature on how information communication technology (ICT) and renewable energy relates to environmental quality in South-East Asia. Earlier literature has mostly focused on individual country cases, and regional investigations, especially in South-East Asian, are largely absent from the existing body of knowledge. The use of ICT and renewable energy are among the top priorities of each economy in this region. We pursued this study with the intention of identifying trends in the way these countries use ICT and renewable energy, and how these emerging factors contribute to their environmental performance. We analyzed the annual data of six countries from between 2000 and 2018, using Panel Quantile Regression, and Dynamic Fixed Effect estimation techniques to test both the hypothesized short-run and long-run relationship between ICT and renewable energy use and environmental quality. Our empirical results reveal the non-mitigating effect of ICT on CO2 emission, confirming that ICT use in this region does not improve environmental performance, but rather causes more environmental degradation. Renewable energy, on the other hand, results in a significant contribution to environmental quality in this region. Our results are consistent with multiple studies in the existing body of knowledge. The findings are very meaningful and useful for policymakers in these countries to help them to frame strategies for renewable energy and ICT use practices that favor the environment.

Keywords

• ICT
• renewable energy
• trade
• environmental quality
• PQR
• DFE