Relationship Between Digitalization and Environmental Sustainability in Selected Countries

Abstract

This chapter aims to observe inter-casual relationship between digitalization and environmental sustainability (ES) in 34 countries during 2000 – 2021. Log-linear regression equations and ARDL models are formulated to detect the association of ES with digitalization. Information and communication technology index and environmental sustainability index are included as useful indicators for digitalization and ES, respectively, in the mentioned models. Foreign direct investment (FDI), employment, R&D expenditure, inflation, environmental technology, per capita GDP, cereal yield, manufacturing value added, merchandise trade, etc. are included as control variables in the regression model. This study found that manufacturing value added, economic development, inflation, cereal yield, employment opportunities, and environmental technology showed a positive impact on environmental sustainability (ES) and digitalization. ES is projected to be diminished due to increase in manufacturing value added, FDI, and cereal yield.