Exploring the Relationship Between ICT and Carbon Dioxide Emissions in Middle East and North African (MENA) Countries: A Panel ARDL-PMG Analysis

Abstract

The Middle East and North Africa (MENA) region faces significant challenges in sustainable development, digital technological advancement, and environmental protection, especially as pollution sources continue to increase and diversify. As MENA countries aim for economic progress, it is essential to understand how digital technological advancements impact their environment. Information and Communication Technologies (ICT) are vital for improving productivity and achieving development goals; however, they can also lead to pollution and increased CO2 emissions owing to their energy consumption and creation of electronic waste. Therefore, this study examined the short-and long-term effects of ICT, economic growth, institutions, population, non-renewable energy, and financial development on CO2 emissions in MENA countries from 2003 to 2021. This study investigates how ICT interacts with institutions and populations and explores how these interactions affect CO2 emissions. We used the panel autoregressive distributed lag (ARDL-PMG) model because it tests both short-and long-term effects. Additionally, it is effective with small sample sizes, making it ideal for our study, which includes only 11 countries. Our findings show that CO2 emissions are significantly affected, in the short and long terms, by ICT, economic growth, population size, and non-renewable energy. In contrast, effective institutions contribute to reducing emissions. Based on these findings, we offer economic recommendations to support sustainable development in the MENA region, aiming to balance technological advancement with the urgent need to address climate change and reduce CO2 emissions. Policymakers should integrate ICT with renewable energy, invest in sustainable sources, and enhance green technology regulations. Strengthening education on sustainable ICT practices and implementing energy efficiency policies will help reduce CO2 emissions in the MENA region.