Does ICT Make Economic Growth Greener? Evidence from Energy Consumption and CO₂ Emissions in BRICS Countries

Abstract

The environmental consequences of digital transformation have become a rising concern for developing economies pursuing rapid economic growth. This study investigates whether ICT contributes to greener GDP growth by weakening the association between growth and carbon emissions in BRICS economies. Although ICT is increasingly viewed as a driver of efficiency, productivity, and green transformation, its environmental impact remains uncertain, as digital expansion may also increase electricity demand and CO₂ emissions. Using panel data from 1990 to 2024, the study applies the Driscoll-Kraay fixed effects model to account for CSD, autocorrelation, and heteroscedasticity issues, while the PCSE is used as a robustness check. The findings reveal that EC and trade enhance carbon emissions, while REN reduces them. Most importantly, the interaction term between GDP and ICT is negative and statistically significant, indicating that ICT weakens the positive interplay between growth and Carbon emissions. This study enriches the existing literature by combining the ICT–growth nexus with the energy–growth–emissions framework in BRICS economies. The findings suggest that ICT can support greener growth when digital development is combined with REN, energy efficiency, green innovation, and sustainable trade policies.