Analyzing Digital Economy’s Role in Global Green Growth Opportunities: An Asymmetric MMQR Approach

Abstract

In terms of environmental consequences, global economies fail to keep the temperature at the targeted level. The green growth economic opportunity is considered the essential solution to achieve SDG 12, which focuses on producing and consuming sustainable patterns. The connection between green growth economic opportunities (GGEO) and the digital economy (DEI) has been neglected in the literature. Thus, to fill this void, the present study analyzes the aggregate influence of the DEI on green growth economic opportunities. The data span 2000-2022 for a panel of 106 economies. This study uses the method of moment quantile regression to assess the influence of the aggregate digital economy, trade (TRDP), government expenditures, urbanization (UBN), and ecological taxes (ETX) on green growth economic opportunities. The outcome demonstrates that the DEI considerably impacts GGEO around the globe in the short, medium, and long run. In addition, the outcomes for sub-economic groups, i.e., high-, upper middle-, lower middle-, and low-income economies, also reveal a positive impact of the DEI on green growth. The results for GGEO and TRDP show a positive influence on GGEO. In contrast, UBN and ETX have a negative impact on GGEO. The study suggests some policy recommendations to achieve the sustainable development goal.