Impacts of Internet Usage on CO2 Emissions under The Moderation of Innovative Activities: The Case of Southeast Asian Countries

Abstract

The negative effects of pollution on economic development has become a focus for many governments. This research, focused on seven Southeast Asian countries between 1996 to 2020, found that widespread internet use increases CO₂ emissions, but also that internet-driven innovation also has moderating effects on CO₂ emissions. The study used random-effects and fixed-effects models, with a data set from the World Bank. Results suggest that policymakers in Southeast Asian countries should promote innovative activities that reduce CO₂ emissions, while maintaining sustainable economic development.