Examining Economic and Technological Drivers of Carbon Dioxide Emissions in Developing Countries: A Policy Perspective

Abstract

This study inquiry into the relationships among information and communication technology, the adoption of renewable energy, primary energy consumption, population growth rate, economic growth, financial development, trade, and CO2 emissions in Asian countries. It has been established that there is a strong association where advances in ICT and an increased uptake of renewable energy are associated with lowered CO2 emissions, thus furthering the aims of environmental sustainability. Primary energy consumption, population growth, and economic growth are all expected to drive an increase in CO2 emissions, which only serves to point out the pretty serious environmental issues facing developing countries as a result of increased industrialization. The interaction of financial development and trade effects was found to be diverse regarding country contexts in the region and thus mixed regarding the effect on CO2 emissions.  ICT advances and increased uptake of renewables are found to strongly associate with reduced CO2 emissions, thus carrying the broader ideals of environmental sustainability. In contrast, a high level of primary energy consumption, a growing population, and increased economic expansion correspond with more CO2 emissions, thereby echoing the environmental challenges that rapid industrialization has brought. The mixed result nature of financial development and trade effects on CO2 emissions indicates the characteristic diversity of different regional contexts in terms of economy, level of development, and progress on reforms. The study further encourages improved international cooperation towards innovative policies that are expected to pave the way for a sustainable and low-carbon future in Asia, thus establishing a strong groundwork for further research and informed policy action in that region.