The Role of Digital Transformation in Mitigating Carbon Dioxide Emissions: Empirical Evidence from Upper-Middle-Income Countries

Articles in Press

Document Type : Research Article

Authors

1 Ph.D. Student in Economics (Iranian Economy), Department of Economics, Faculty of Economics and Accounting, Firuzkuh Branch, Islamic Azad University, Firuzkuh, Iran

2 Associate Professor, Department of Economics, Faculty of Economics and Accounting, Firuzkuh Branch, Islamic Azad University, Firuzkuh, Iran

Abstract

This study examines the impact of information and communication technology on carbon dioxide emissions in upper-middle-income countries during the period from 1995 to 2022. To measure ICT, a composite index was constructed using the Principal Component Analysis method to reduce multicollinearity among technological variables and obtain more stable and accurate estimates. The model was estimated using the Generalized Method of Moments , The results indicate that ICT and renewable energy consumption have a significant negative effect on carbon emissions, while income growth and industrial development significantly contribute to its increase. Additionally, high-tech goods exports have a reducing effect on carbon emissions, although this effect is statistically insignificant. The validity of the model’s instruments was also confirmed using the Sargan test. The selection of upper-middle-income countries was made due to their transitional development conditions; countries that simultaneously possess relatively advanced technological infrastructures and rapid industrial growth. The findings of the study indicate that ICT development and the expansion of clean energy can serve as an effective strategy for reducing environmental pollution and supporting sustainable development pathways in these countries.

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Journal of Economic Policies and Research

Articles in Press, Accepted Manuscript
Available Online from 04 October 2025

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History

  • Receive Date: 15 August 2025
  • Revise Date: 01 October 2025
  • Accept Date: 04 October 2025
  • Publish Date: 04 October 2025

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