Sustainable futures through green technology: The paradox of green information and communication technologies and financial inclusion on load capacity factor

Traditional reliance on CO2 emissions as the sole indicator of environmental degradation has been increasingly criticized for neglecting other pollutants and ecosystem dynamics. Although the ecological footprint provides a broader measure and it fails to capture ecosystem responses. In contrast, the Load Capacity Factor (LCF), derived from biocapacity and it offers a more holistic representation of environmental conditions. Despite its potential, limited research has examined how major drivers of degradation interact with LCF, particularly in emerging economies. Addressing this gap, the present study investigates the relationship between economic growth, green information and communication technologies (GICT), financial development (FD), and urbanization with LCF in BRICS countries. This study analyzed the data from 2000 to 2022 by applying panel unit root tests, panel cointegration tests and panel quantile regression analysis. The findings of the study revealed that the economic growth is inversely affecting the LCF. However, a potential parabolic relationship confirmed the presence of the LCF hypothesis suggesting that further economic growth could lead to sustainable outcomes. The use of GICT helped to reduce the environmental degradation in BRICS countries but effect appeared to be modest. Furthermore, development of financial markets in BRICS countries is intensifying the environmental degradation in BRICS countries. However, the interaction term (FD*GICT) suggested that financial investments in green technologies can lead to positive outcomes of environmental sustainability. Urbanization is significantly and positively affecting LCF, indicating the efficient use of infrastructure by BRICS countries. Based on empirical findings, this study recommends comprehensive policy framework for achieving the targets of sustainable development goals (SDGs), such as SDG 13 (climate change), SDG 09 (innovations), and SDG 08 (decent economic growth).