Role of energy consumption, information and communications technology, and economic complexity in promoting environmental sustainability: Implications for gulf countries

Abstract

AbstractIn this empirical investigation, we analyze the correlation among Information and Communication Technology (ICT), economic complexity, CO2, financial development, and energy in Gulf countries over the period from 1995 to 2019. The study also incorporates the role of financial development and energy in understanding these relationships. Various panel techniques are employed to assess these intricate interconnections. The CSD and slope heterogeneity tests support the adoption of second‐generation techniques. The Westerlund cointegration results affirm a long‐term association between CO2 and the independent variables. The findings from the CS‐ARDL model reveal that economic growth, financial development, and oil energy contribute to increased CO2, resulting in a decline in ecological quality. By contrast, economic complexity and gas energy contribute to improved ecological quality by reducing CO2. The MMQR analysis corroborates these results, establishing significant relationships across various quantile distributions of CO2. Furthermore, with the exception of economic complexity, all the variables demonstrate predictive capabilities concerning CO2. These empirical insights provide practical policy implications aimed at achieving Sustainable Development Goals (SDGs) 7, 9, and 13.