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<p>The present study aimed to examine the relationship between the digital economy and environmental sustainability in the context of the Sustainable Development Goals of Oman Vision 2040. Monthly time series data from 2010 to 2022 were analysed using nonlinear estimators, i.e. quantile regression (QR) and nonlinear autoregressive distributed lag (NARDL), and diagnostic tests were used for this purpose for all four study models and determine the ideal analysis methods. The study findings revealed a significant negative relationship between the digital economy and environmental sustainability, measured by carbon dioxide damage in the long run due to efficiency gains. Additionally, there was a positive relationship between the digital economy and environmental sustainability, measured by freshwater withdrawals in the long run due to higher demand for urban digital infrastructure and water-intensive energy systems in an arid context. Meanwhile, there was a positive relationship between the digital economy and environmental sustainability, measured by carbon dioxide damage and freshwater withdrawals in the short run, because initial information communication technology deployment increases energy consumption before efficiency gains. In conclusion, the transition from scale effects to technique and composition effects explains the shift of the digital economy from short-run environmental pressure to selective long-run sustainability gains, consistent with the Environmental Kuznets Curve (EKC) applied to digital transformation in resource-constrained economies such as Oman. For more robustness, the Toda and Yamamoto causality tests provided evidence of positive causality because the digital economy caused changes in environmental sustainability. The findings indicate that the digital economy offers opportunities for transformative change and sustainability, including numerous benefits in terms of efficiency, innovation, and connectivity, but also poses significant challenges to environmental sustainability. Societies can work towards a more sustainable future by effectively leveraging digital technologies and adopting a proactive approach to environmental stewardship.</p>

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Does the Digital Economy Matter for Environmental Sustainability?

  • 期刊论文

  • 发表日期：

    2026年4月9日

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  • Faris Alshubiri,
  • Samir Hammami

摘要

The present study aimed to examine the relationship between the digital economy and environmental sustainability in the context of the Sustainable Development Goals of Oman Vision 2040. Monthly time series data from 2010 to 2022 were analysed using nonlinear estimators, i.e. quantile regression (QR) and nonlinear autoregressive distributed lag (NARDL), and diagnostic tests were used for this purpose for all four study models and determine the ideal analysis methods. The study findings revealed a significant negative relationship between the digital economy and environmental sustainability, measured by carbon dioxide damage in the long run due to efficiency gains. Additionally, there was a positive relationship between the digital economy and environmental sustainability, measured by freshwater withdrawals in the long run due to higher demand for urban digital infrastructure and water-intensive energy systems in an arid context. Meanwhile, there was a positive relationship between the digital economy and environmental sustainability, measured by carbon dioxide damage and freshwater withdrawals in the short run, because initial information communication technology deployment increases energy consumption before efficiency gains. In conclusion, the transition from scale effects to technique and composition effects explains the shift of the digital economy from short-run environmental pressure to selective long-run sustainability gains, consistent with the Environmental Kuznets Curve (EKC) applied to digital transformation in resource-constrained economies such as Oman. For more robustness, the Toda and Yamamoto causality tests provided evidence of positive causality because the digital economy caused changes in environmental sustainability. The findings indicate that the digital economy offers opportunities for transformative change and sustainability, including numerous benefits in terms of efficiency, innovation, and connectivity, but also poses significant challenges to environmental sustainability. Societies can work towards a more sustainable future by effectively leveraging digital technologies and adopting a proactive approach to environmental stewardship.