Embracing the digital revolution: Examining the relationship between ICT adoption and carbon emissions in the Persian Gulf

Abstract

In this digital age, promoting economic development through technology innovation and adoption has become a pressing matter, contributing to increased productivity and, in turn, carbon emissions. Consequently, this study employs a novel technique (Newey–West Standard Error Method, Technology Adaptation Model) to quantify information and communication technology (ICT) adoption rates as a proxy indicator for evaluating the Persian Gulf economy’s technology development. Moreover, this study investigates the evidence of the environmental Kuznets curve, with trade openness, technological adoption, and innovation as sustainable development controls. The findings reveal that two of three technological innovation instruments, fixed telephone, and internet subscriptions, increase carbon emissions. In contrast, mobile cellular subscriptions simultaneously reduce carbon emissions in the Persian Gulf. Furthermore, measures of technology adoption, high-technology exports, and electricity use contribute to the increase in carbon emissions. Trade openness also raises carbon emissions in the Persian Gulf. These findings suggest that policymakers must develop technological innovation and adoption strategies that effectively promote a greener environment.