Evaluating the Impact of Financial Development, Energy Consumption, and Information and Communication Technologies on Ecological Footprint in the GCC Countries
摘要
The GCC region, home to the world’s largest proven oil and gas reserves, has primarily relied on hydrocarbon extraction as the foundation of its economic development. The region’s distinctive economic structure plays a crucial role in examining the impact of energy consumption, information and communication technologies (ICT), and financial development in the pursuit of sustainable growth while minimizing carbon emissions. Therefore, this study investigates the nexus between financial development, information and communication technologies, energy consumption and ecological footprint for four of the GCC countries over the period from 1998 to 2020. The ICT index and the financial development index are formed by principal component analysis using different measures. To verify both the long- and short-term relationships, the second-generation panel techniques that account for heterogeneity are employed. Accordingly, the Westerlund co-integration test, the augmented mean group (AMG) model and the Dumitrescu and Hurlin causality test are used. The results show that the financial development and energy consumption increase the ecological footprint level whereas the ICT index reduces it. The findings emphasize the critical need for GCC countries to prioritize technological advancements in order to achieve climate-related targets and Sustainable Development Goals (SDGs) by reducing dependence on resource-based consumption. Integrating information technology networks into environmental investments and mechanisms is essential for enhancing sustainability efforts. Additionally, leveraging the region’s growing technological communication capabilities can drive the development and adoption of energy-efficient technologies, supporting a more sustainable and resilient economic future.