Do Green Energy and Information Technology Influence Greenhouse Gas Emitting Countries to Attain Sustainable Development?

Abstract

Transitioning from traditional energy sources to green and sustainable energy sources can potentially reduce environmental problems. Many countries are gradually recording increasing greenhouse gas (GHG) emissions as they develop their economies. As a result, this study aims to use top GHG-emitting countries in its analysis to establish the role green energy and information technology play in reducing their pollution levels. Data from 11 GHG-emitting countries from 1990–2020 were utilized. The Fully Modified Ordinary Least squares (FMOLS), Dynamic ordinary least squares (DOLS), and Granger causality are used for the analysis. The empirical results revealed that an increase in non-renewable energy usage of 1% increases GHG gas emissions by 0.6960% (FMOLS) and 0.6119% (DOLS). On the impact of renewable energy, a 1% increase reduces GHG emissions by 0.1145% (FMOLS) and 0.1957% (DOLS). Also, a 1% increase in information technology increases GHG emissions by 0.0459% (FMOLS) and 0.0429% (DOLS) under the specifications of FMOLS and DOLS. The directional causalities are established in the study as well. In light of this, using “abundant” renewable energy sources is the gateway to reducing GHG emissions alongside their tremendous economic growth and I.T. development. Other policy implications are outlined for future research and policymakers.