Assessing the Impact of ICT, Tourism, Globalization and Urbanization on Environmental Degradation and Economic Growth

Abstract

This study explores the impact of information and communication technology (ICT), tourism, globalization, and urbanization on the economic growth and environmental degradation of middle-income countries classified as overall, upper and lower-middle-income countries. It uses a micro panel dataset of 65 nations from 2000 to 2021 through a two-step Generalized Method of Moment estimation approach. The results indicate that the influence of ICT on environmental degradation differs across nation groups. Overall countries have a harmful effect, upper-middle countries exhibit a beneficial influence, and lower-middle countries show no significant link. Tourism continually causes environmental deterioration in all sorts of nations, emphasizing the need for eco-friendly tourist initiatives. Globalization has been seen to have a positive correlation with environmental degradation in countries classified as Overall and Upper-middle income, but a negative correlation in Lower-middle-income nations. Urbanization has a favorable influence on environmental deterioration in Overall and Lower-middle-income nations, but it does not have a significant impact in Upper-middle-income countries. These findings underscore the need to tackle the environmental impacts of information and communication technology (ICT), tourism, globalization, and urbanization. To attain a greener and more sustainable future while fostering economic growth, policymakers should prioritize sustainable development, introduce energy-efficient technologies, encourage responsible tourism practices, enforce environmental regulations, and advocate for inclusive urban planning.