Does ICT development influence renewable energy investment? Evidence from top-polluted economies

Abstract

Investing in renewable energy sources is one of the best solutions to deal with climate change and global warming. Information and communication technology (ICT) has played a critical role in making a more sustainable economy. However, whether ICT influences renewable energy investment is a matter of concern for most empirics. Employing the CS-ARDL model, this study covers the period from 1998 to 2021 and aims to explore the connection between ICT and renewable energy investment in top-polluted economies, encompassing Asian, American, African, and European regions. The findings of the CS-ARDL model confirm that ICT increases investments in renewable energy in the long run in all regions. Moreover, GHG emissions, GDP, and financial development also cause renewable energy investment to rise in top polluted economies. In the short run, most of the estimated coefficients are insignificant in almost all samples. These results imply that policymakers should try integrating ICT into the renewable energy industry to make it more accessible to as many people as possible to promote greener practices in top polluted economies.