THE INFLUENCE OF DIGITALIZATION ON CO2 EMISSIONS IN DEVELOPING COUNTRIES: POLICY INSIGHTS FOR VIETNAM

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.