The effects of financial development and technological progress on environmental sustainability: novel evidence from Asian countries

This research is an endeavor to improve the literature on information and communication technology (ICT)-financial development-environmental sustainability nexus by conducting an aggregated and disaggregated analysis on the role of financial development and technological progress in attaining a sustainable environment. By employing a unique and comprehensive set of financial development and ICT indicators, this study offers an in-depth analysis of the role of financial development, ICT, and especially their interactions in maintaining environmental sustainability in 30 Asian economies from 2006 to 2020. Results from the two-step system generalized method of moments indicate that separately, both financial development and ICT are detrimental but together, their joint effects are beneficial to the environment. Several policy implications and recommendations are made to help policymakers to craft, design, and implement appropriate policies to improve environmental quality.