EFFECT OF NATURAL RESOURCES, ICT EXPENDITURES AND ENERGY INTENSITY ON ENVIRONMENTAL DEGRADATION IN ASEAN COUNTRIES

Abstract

This study investigates the impact of natural resource rents, ICT expenditures, and energy intensity on environmental degradation in ASEAN countries for 2001–2023, while also testing the Environmental Kuznets Curve (EKC) hypothesis. Ecological footprint per capita is employed as a comprehensive indicator of environmental pressure. The empirical methodology comprises cross-sectional dependence tests, second-generation unit root and Westerlund cointegration tests, and heterogeneous panel estimators including Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG). Method of Moments Quantile Regression (MMQR) is used to capture distributional heterogeneity, supplemented by Dumitrescu–Hurlin causality analysis. The results reveal that natural resource reliance and energy intensity significantly worsen environmental degradation, supporting the resource-curse and energy-dependence hypotheses. Conversely, ICT spending contributes to environmental improvement, suggesting the role of digitalization in fostering sustainability. The positive GDP and negative GDP² coefficients also validate the EKC hypothesis in ASEAN. The study emphasizes the need for resource-efficient growth, clean energy transition, and ICT-based environmental strategies to achieve sustainable development in the ASEAN region.