Digital Media and Green Development Path in Asia: Does Digital Financial Inclusion Matter?

Abstract

We are entering a new epoch characterized by pervasive digitization, where a significant proportion of our daily activities rely on advanced digital and informational technology. Consequently, this study intends to scrutinize the repercussions of digital media and digital financial inclusion on environmentally sustainable growth across 38 selected economies. The research incorporates four distinct empirical analysis techniques: two-stage least squares (2SLS) and the generalized method of moments (GMM). The assessment reveals a meaningful and positive association between digital financial inclusion and green growth per the 2SLS and GMM methodologies. This affirms the notion that digital financial aid fosters ecological sustainability. Conversely, the metrics linked with information and communication technology (ICT) have shown positive significance across all four utilized estimation models. This suggests that an increase in ICT utilization can play a vital role in advancing green growth. In the same vein, the estimated coefficients of research and development initiatives and renewable energy consumption have demonstrated positive significance across all four models. Furthermore, the metrics associated with trade openness have exhibited a positive significance in both the 2SLS and GMM models. Meanwhile, the metric linked with education has displayed a positive significance solely with the GMM technique. Upon evaluation, it can be concluded that digital media, the consumption of renewable energy, and research and development endeavors are principal contributors to green growth.