Testing the role of information and communication technologies and renewable energy consumption in ecological footprint quality: Evidence from world top 10 pollutant footprint countries

Abstract

The main aim of the current study is to investigate the impacts of information and communication technologies (ICT), renewable and non-renewable energy consumption, financial development and economic growth on the environment in 10 countries with the worst environmental degradation (i.e., China, Brazil, Germany, Indonesia, India, Japan, Mexico, Russian Federation, United States and United Kingdom). Against the previous empirical studies, we tested the validity of the environmental Kuznets curve hypothesis (EKC) by using more comprehensive indicator of environmental quality entitled as Ecological Footprint and took into account the role of ICT for the first time. Long-run equilibrium relationships highlight the vital role of alternative energy sources, ICT and financial development in improving environmental quality. Panel ARDL results show that increased non-renewable energy consumption leads to environmental deterioration while renewable energy consumption, ICT and financial developments abate environmental deterioration in these countries. That the rejection of EKC indicates that scale effect became prominent in the analysis period. Thus, since income increase cannot improve the environment on its own, governments should design some policies as discussed in the conclusion.