THE INFLUENCE OF DIGITALIZATION ON CO2 EMISSIONS IN DEVELOPING COUNTRIES: POLICY INSIGHTS FOR VIETNAM
Keywords
DOI:
https://doi.org/10.37569/DalatUniversity.16.3.1568(2026)Abstract
Digital technology has become an unstoppable progression in most countries due to its vital role in socio-economic progress. Meanwhile, humanity is grappling with severe weather events such as superstorms, floods, and rising sea levels caused by escalating CO2 emissions. Does digitalization influence CO2 emissions in developing countries? For the answer, this study employs three indicators of digital technology to examine its impact on CO2 emissions across 89 developing countries from 2010 to 2023, utilizing difference generalized method of moments Arellano-Bond estimators. The findings indicate that digitalization contributes to increased CO2 emissions. Furthermore, economic growth and infrastructure expansion drive emissions upward, whereas inflation lowers them. These insights offer policy recommendations for developing countries to regulate digitalization in a way that curbs CO2 emissions.
Downloads
References
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277–297. https://doi.org/10.2307/2297968
Avom, D., Nkengfack, H., Fotio, H. K., & Totouom, A. (2020). ICT and environmental quality in sub-Saharan Africa: Effects and transmission channels. Technological Forecasting and Social Change, 155, Article 120028. https://doi.org/10.1016/j.techfore.2020.120028
BBC. (2024, November 8). Fresh Spain floods sweep away dozens of cars near Girona. https://www.bbc.com/news/articles/crk4zlkdgk8o
Chen, L. (2022). How CO2 emissions respond to changes in government size and level of digitalization? Evidence from the BRICS countries. Environmental Science and Pollution Research, 29(1), 457–467. https://doi.org/10.1007/s11356-021-15693-6
CNN. (2024, September 8). Typhoon Yagi kills dozens in Vietnam, China, Philippines. https://edition.cnn.com/2024/09/08/asia/typhoon-yagi-vietnam-china-philippines-intl/index.html
Hansen, L. P. (1982). Large sample properties of generalized method of moments estimators. Econometrica, 50(4), 1029–1054. https://doi.org/10.2307/1912775
Huang, Y., & Zhang, Y. (2023). Digitalization, positioning in global value chain and carbon emissions embodied in exports: Evidence from global manufacturing production-based emissions. Ecological Economics, 205, Article 107674. https://doi.org/10.1016/j.ecolecon.2022.107674
Judson, R. A., & Owen, A. L. (1999). Estimating dynamic panel data models: A guide for macroeconomists. Economics Letters, 65(1), 9–15. https://doi.org/10.1016/S0165-1765(99)00130-5
Ma, R., & Lin, B. (2023). Digitalization and energy-saving and emission reduction in Chinese cities: Synergy between industrialization and digitalization. Applied Energy, 345, Article 121308. https://doi.org/10.1016/j.apenergy.2023.121308
Nguyen, V. B. (2022a). Does digitalization widen income inequality? A comparative assessment for advanced and developing economies. South East European Journal of Economics and Business, 17(2), 154–171. https://doi.org/10.2478/jeb-2022-0021
Nguyen, V. B. (2022b). The effect of FDI inflows on unemployment in Asian developing economies and the role of digitalization. Southeast Asian Journal of Economics, 10(2), 59–94. https://so05.tci-thaijo.org/index.php/saje/article/view/260616
Nguyen, V. B. (2024). The impact of digitalization on international remittances in developing economies: The paradox of institutional development. Global Journal of Emerging Market Economies, 17(1), 7–21. https://doi.org/10.1177/09749101241262874
Pan, M., Zhao, X., Kangjuan, L., Rosak-Szyrocka, J., Mentel, G., & Truskolaski, T. (2023). Internet development and carbon emission-reduction in the era of digitalization: Where will resource-based cities go? Resources Policy, 81, Article 103345. https://doi.org/10.1016/j.resourpol.2023.103345
Rahman, M. M., & Alam, K. (2022). Effects of corruption, technological innovation, globalisation, and renewable energy on carbon emissions in Asian countries. Utilities Policy, 79, Article 101448. https://doi.org/10.1016/j.jup.2022.101448
Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. The Stata Journal, 9(1), 86–136. https://doi.org/10.1177/1536867X0900900106
Saia, A. (2023). Digitalization and CO2 emissions: Dynamics under R&D and technology innovation regimes. Technology in Society, 74, Article 102323. https://doi.org/10.1016/j.techsoc.2023.102323
Telecom Review. (2023, June 12). Embracing the future: Asian countries progress towards digital transformation. https://telecomreviewasia.com/news/featured-articles/3347-embracing-the-future-asian-countries-progress-towards-digital-transformation/
Tuoi Tre News. (2025, January 22). Online marketplace flooded with Chinese goods ahead of Tet in Vietnam. https://tuoitrenews.vn/news/business/20250122/online-marketplace-flooded-with-chinese-goods-ahead-of-tet-in-vietnam/84089.html
United Nations. (2023). Emissions gap report 2023: Broken record–Temperatures hit new highs, yet world fails to cut emissions (again). https://www.unep.org/interactives/emissions-gap-report/2023/
United Nations. (2024). Climate change. https://vietnam.un.org/en/174469-climate-change
Wang, J., Dong, K., Sha, Y., & Yan, C. (2022). Envisaging the carbon emissions efficiency of digitalization: The case of the internet economy for China. Technological Forecasting and Social Change, 184, Article 121965. https://doi.org/10.1016/j.techfore.2022.121965
Wang, Q., Sun, J., Pata, U. K., Li, R., & Kartal, M. T. (2024). Digital economy and carbon dioxide emissions: Examining the role of threshold variables. Geoscience Frontiers, 15(3), Article 101644. https://doi.org/10.1016/j.gsf.2023.101644
World Bank. (2024). Digital progress and trends report 2023. https://www.worldbank.org/en/publication/digital-progress-and-trends-report
World Meteorological Organization. (2023). WMO greenhouse gas bulletin No. 19. Geneva. https://public.wmo.int/en/greenhouse-gas-bulletin
Zhang, H., Dogan, E., Khan, Z., & Binsaeed, R. H. (2024). Do digitalization and green innovation limit carbon emissions? Evidences from BRICS economies. Energy & Environment, Article 0958305X241289537. Online Publication. https://doi.org/10.1177/0958305X241289537
Zhao, L., Rao, X., & Lin, Q. (2023). Study of the impact of digitization on the carbon emission intensity of agricultural production in China. Science of the Total Environment, 903, Article 166544. https://doi.org/10.1016/j.scitotenv.2023.166544
Zheng, R., Wu, G., Cheng, Y., Liu, H., Wang, Y., & Wang, X. (2023). How does digitalization drive carbon emissions? The inverted U-shaped effect in China. Environmental Impact Assessment Review, 102, Article 107203. https://doi.org/10.1016/j.eiar.2023.107203.