Exploring the Relationship Between ICT and CO2 Emissions in MENA Countries:A Panel ARDL-PMG Analysis

Abstract

The Middle East and North Africa (MENA) region faces significant challenges in sustainable
development, digital technological advancements, and environmental protection, especially as
pollution sources continue to increase and diversify. As MENA countries aim for economic
progress, it is essential to understand how digital technological advancements impact the
environment. Information and Communication Technologies (ICT) are vital for improving
productivity and achieving development goals; however, they can also lead to pollution and
increased CO2 emissions due to their energy consumption and creation of electronic waste.
Therefore, this study examined the short and long-term effects of ICT, economic growth,
institutions, population, non-renewable energy and financial development on CO2 emissions in
MENA countries from 2003 to 2021. In addition, this study investigates how ICT interacts with
institutions and populations and explores how these interactions affect CO2 emissions. We used the
panel autoregressive distributed lag (ARDL-PMG) model because it tests both short-term and longterm
effects. Additionally, it is effective with small sample sizes, making it ideal for our study,
which includes only eleven countries. Our findings show that CO2 emissions are significantly
affected, in the short and long term, by ICT, economic growth, population size, and non-renewable
energy. In contrast, effective institutions contribute to reducing these emissions. Based on these
findings, we offer economic recommendations to support sustainable development in the MENA
region, aiming to balance technological advancements with the urgent need to address climate
change and reduce CO2 emissions. Policymakers should integrate ICT with renewable energy,
invest in sustainable sources, and enhance regulations for green technologies. Strengthening education on sustainable ICT practices and implementing energy efficiency policies will also help reduce CO2 emissions in the MENA region.