The impact of biomass energy and information and communication technology on economic growth : a global panel data analysis

Abstract

As digital technologies expand and renewable energy becomes a priority in climate and economic development policy, countries are pursuing strategies and approaches to promote sustainability in their economic growth trajectories. This study explores the dynamic relationship between biomass energy consumption, information and communication technology (ICT), and economic growth within a global context. Motivated by the increasing role of digitalization and renewable energy in shaping sustainable economic pathways, this research investigates whether these factors serve as catalysts for economic expansion. Utilising panel data from 157 countries spanning 1990 to 2023, we employ an ICT index incorporating internet users, fixed broadband subscriptions, mobile cellular subscriptions, and fixed telephone subscriptions. To ensure robustness, the empirical methodology integrates fixed and random effects models, and system GMM estimation. We further employ panel quantile regression analysis to account for potential slope heterogeneity. The findings underscore that biomass energy consumption significantly fosters economic growth, though its impact diminishes in high-growth economies. In contrast, ICT emerges as a strong and consistent driver of economic growth across all levels of economic development. These insights offer critical policy implications, highlighting the need for tailored strategies that leverage digital transformation and sustainable energy sources to optimize economic outcomes.