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Bangladesh Bank Training Academy Journal

THOUGHTS ON BANKING AND FINANCE

Thoughts on Banking and Finance, July-December, 2025

The Effect of Digital Communications on Carbon Emission: A Panel Data Model

DOI
https://doi.org/10.64968/bbta.tbf.2025.10.02.03
Journal volume & issue
Vol. 10 Issue 2
pp. 31-40
Authors
Saila Sarmin Rapti and Tarek Aziz

Abstract



The main objective of this paper is to explore the impact of Digital Communications on carbon emissions of the selected countries of the world. Very few studies have investigated the relationship between digital communications and carbon emissions from different perspectives. To the best of our knowledge, no previous studies have compared this effect between low- and high-income countries. This study will contribute to addressing this untapped area. More specifically, the following research questions need to be addressed: What kind of impact does digital communication have on carbon emissions, and are the effects different for low-income and high-income countries? This study selects 98 countries and divides them into different groups according to their income status from 2007 to 2021. The study used panel data techniques and reported the results obtained from Fixed Effects estimations. Data is collected from the World Bank, ITU (International Telecommunication Union). The empirical results showed that digital communication negatively and significantly affects CO2 emissions, which means more digital communication advancement will reduce carbon emissions. The findings demonstrate that the index of digital communications has a negative but insignificant influence on CO2 emissions for regions with lower income

Keywords: Digital Communication, Carbon Emissions, Panel Data Analysis, Fixed effect model

JEL Classification: Q53, O44, Q55