Bridging the digital–environmental nexus: An empirical panel analysis of ICT, CO2 emissions, and growth in developing nations

Abstract

In recent decades, the rapid expansion of information and communication technologies (ICT) has reshaped both economic structures and environmental dynamics globally. This study explores the relationship between digital adoption, economic growth, and carbon emissions in 86 developing countries, categorized by income level, over the period 1990–2021. Using panel regression techniques based on fixed and random effects models, we assess the Environmental Kuznets Curve (EKC) hypothesis and examine whether income levels follow the classic inverted U-shaped trajectory of pollution. The analysis also considers whether digitalization itself may exhibit an EKC-type relationship with emissions. Results show significant variation in the environmental effects of digital adoption across income groups. High-income developing countries increasingly integrate digital tools to reduce emissions, whereas low-income countries encounter infrastructure and institutional limitations that hinder such gains. These disparities highlight the need for income-sensitive digital and environmental strategies. The study provides a deeper understanding of how national context influences the environmental outcomes of digitalization. By addressing this critical intersection, the article offers important insights for policymakers aiming to use digital technologies not only to promote economic development but also to support a more sustainable and inclusive growth path across developing regions.