Exploring the Impact of Digitalization and Green Energy Development on Ecological Footprints: A Comparative Study of SAARC Countries

Abstract

The research explore how digitalization and increased consumption of green energy may influence the ecological footprint of the SAARC countries between 2001 and 2023. With the development of environmental sustainability into a burning issue on the international agenda, the use of renewable sources and digital technologies has become major determinants of environmental success or failure. The study uses panel cointegration tests (Westerlund), panel unit root tests (CIPS and CADF), correlation analysis, and descriptive statistics of eight SAARC countries using panel data to test the short- and long-term relationships. The dependent variable is defined as ecological footprint per capita, whereas the primary independent variables will be digitalization (percentage of people using the internet) and green energy consumption. Control variables are financial development and foreign direct investment. The empirical evidence shows that digitalization and consumption of green energy has a great impact of lowering ecological footprint but FDI and financial development have a mixed influence over environmental degradation. These findings demonstrate the significance of the use of digital technologies and renewable energy to attain sustainable development in the SAARC region.