Rethinking digital finance and information and communication technology (ICT) capital impacts on environmental goods trade under carbon neutrality targets

Abstract

Digital financial inclusion (DFI) is creating dynamics in trade credit financing and trading environmentally through rapid growth of information and communication technology (ICT). Conversely, the empirical evidence is not available to validate the contribution of ICT and DFI in promoting trade in environmental goods. Hence, this research work is an attempt to unfold the nexuses of trade in environmental goods, DFI, and ICT globally in Asia, America, and Europe, respectively. The findings infer that DFI and ICT are the primary factors boosting trade in environmental goods globally, in Asia, America, and Europe, respectively. Furthermore, environmental pollution, economic development, and education are also uplifting the trading related to environmental goods in most regions. In the light of empirical estimates, it suggests that policymakers should give ICT infrastructure and digital connectivity priority investments to maintain the accessibility and effectiveness of environmental goods trading.