The Relationship Between ICT, Financial Development, and Environmental Degradation in the Indian Economy

Çetin M., Sümerli Sarıgül S.

4TH INTERNATIONAL CONFERENCE ON CONTEMPORARY ACADEMIC RESEARCH ICCAR 2025, 22 - 23 February 2025, pp.330-336

  • Publication Type: Conference Paper / Full Text
  • Page Numbers: pp.330-336
  • Kayseri University Affiliated: Yes

Abstract

Climate change, and environmental degradation are among the primary challenges faced by economies

worldwide. India is one of the countries with the highest CO2 emissions in the context of environmental pollution.

The study explores the effect of ICT and financial development on environmental degradation in the Indian economy

over the period 1990-2020. Economic growth and industrialization are also integrated into the model as other drivers

of environmental degradation. The empirical results of the study demonstrate that the series are stationary at their

first differences. The ARDL bounds testing approach reveals the existence of a long-run link among the variables.

According to the estimation results, financial development improves environmental quality by reducing CO2

emissions. In contrast, economic growth, ICT, and industrialization contribute to environmental degradation by

supporting CO2 emissions. Based on these findings, policymakers in the Indian economy may be advised to prioritize

initiatives that support financial development. On the other hand, in combating environmental degradation, it is

crucial to incorporate environmental sensitivity into strategies related to economic growth, industrialization, and ICT.