Role of Information and Communication Technology, Foreign Direct Investment and Trade Openness in Environmental Sustainability

Purpose: The benefits of Information and Communication Technologies (ICTs) in environmental resource management has been a topic of hot discussion for the policymakers across the world.  For the purpose, the government of Pakistan took initiative in 2018 to use technology for the country’s social welfare, financial benefits and to enhance environmental sustainability and named it as “Digital Pakistan Initiative”.Design/Methodology/Approach: For analysis, this study took CO2 emissions as the dependent variable and ICT, FDI inflows, and Trade Openness as independent variables. Data were collected on bimonthly basis from 2004 through 2019, and analyzed employing ARDL approach. Main purpose of the study was to examine the short-run and long-run relationship among carbon emissions and ICT, FDI Inflows and Trade Openness.Findings: The findings show that there exists a short-run relationship among all the variables; however, FDI inflows and trade openness have a significant relationship with CO2 emissions. The results also exhibit that there is no long-run relationship between CO2 emissions, FDI inflows, and Trade openness while ICT has an insignificant long-run relationship with CO2 emissions. With the increase of information and communication, the country’s environmental sustainability is also increased. Implications/Originality/Value: The current study was based on least considered variables and the pioneer in testing the complex relationship through VAR estimation