Digital Economy & the Green Sustainable Economic Growth in the MENA Region, with Special Reference to Egypt
Iman Moheb Zaki *
College of Management and Technology, Arab Academy for Science, Technology and Maritime Transport (AASTMT), Alexandria, Egypt.
Ahmed Magdy Mansour
Arab Academy for Science, Technology and Maritime Transport, Alexandria, Egypt.
*Author to whom correspondence should be addressed.
Abstract
Rapid digital transformation is affecting infrastructure and sectors that produce (Greenhouse Gas) GHG emissions. This paper focuses on some of the environmental impacts of digital technologies. The study also addresses the joint impact of 6 independent variables (Credit, GDP, Manufacturing, Trade, ICT & Renewable energy) on Carbon Dioxide (CO2) emissions components in 15 Middle East North Africa (MENA) countries, using panel data fixed effect regression analysis. The research is divided into 8 sections: 1- Measurements of digital readiness. 2- Mechanism through which Digital Economy (DE) can affect major macro-economic indicators. 3- Impact of DE on green sustainable economic growth. 4- Measurements & determinants of CO2 emissions. 5- Challenges facing MENA economies in the Digital Transformation (DT) era. 6- MENA empirical statistical analysis regarding CO2 emissions components. 7- DT process in the Egyptian economy. 8- Recommendations.
Main statistical findings show that the greatest joint impact of (Credit, GDP, Manufacturing, Trade, Information, Communication & Technology (ICT) & Renewable energy) on CO2 emissions components in MENA is in non-residential, manufacturing & construction, electricity and transport sectors. ICT, trade & renewable energy decrease the level of CO2 emissions from gaseous and liquid fuel combustion as percentage of total fuel combustion in MENA. Degree of financial development is crucial. There is no consensus regarding the sole role of ICT on emissions in MENA.
Keywords: Digital economy, green sustainable growth, co2 emissions