Environmental Sustainability and CO 2 Emissions in Mexico: Unveiling the Roles of Fiscal Policy, Digital Innovation, and Renewable Energy Transitions

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Autori principali: Sohidul Islam, Md. Yousuf, Bablu Kumar Dhar, Reday Chandra Bhowmik, Md. Mustaqim Roshid, Shaharier Arafat Sumon
Natura: Artículo Open Access
Pubblicazione: Wiley 2025
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author Sohidul Islam
Md. Yousuf
Bablu Kumar Dhar
Reday Chandra Bhowmik
Md. Mustaqim Roshid
Shaharier Arafat Sumon
author_facet Sohidul Islam
Md. Yousuf
Bablu Kumar Dhar
Reday Chandra Bhowmik
Md. Mustaqim Roshid
Shaharier Arafat Sumon
Sohidul Islam
Md. Yousuf
Bablu Kumar Dhar
Reday Chandra Bhowmik
Md. Mustaqim Roshid
Shaharier Arafat Sumon
collection Wiley Open Access
contents Environmental Sustainability and CO 2 Emissions in Mexico: Unveiling the Roles of Fiscal Policy, Digital Innovation, and Renewable Energy Transitions Sohidul Islam Md. Yousuf Bablu Kumar Dhar Reday Chandra Bhowmik Md. Mustaqim Roshid Shaharier Arafat Sumon Sustainable Development ABSTRACT Addressing environmental degradation has become a pressing priority in the era of global sustainability. As carbon dioxide (CO 2 ) emissions continue to escalate—particularly in emerging economies—identifying effective policy and technological pathways for emissions reduction is essential. This study investigates how economic growth, governance mechanisms, and technological advancement influence environmental sustainability in Mexico during the period 1980–2023. Mexico, a key emerging economy with ambitious climate goals, serves as a critical case for exploring these dynamics. Using annual time series data, the study employs the autoregressive distributed lag (ARDL) bounds testing method, supported by robustness checks using fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), and canonical cointegration regression (CCR) techniques. The findings reveal that fiscal decentralization and economic growth significantly contribute to environmental degradation, while renewable energy consumption and globalization are associated with reductions in CO 2 emissions. Although ICT expansion holds long‐term efficiency potential, it currently exacerbates emissions due to its dependence on fossil‐fuel‐based infrastructure. These results underscore the complex trade‐offs involved in aligning fiscal, technological, and energy policies with sustainability goals. The study concludes with clear policy recommendations: Mexico should reform its fiscal decentralization frameworks, invest in renewable‐powered ICT infrastructure, and accelerate clean energy development to fulfill its climate commitments. The findings offer actionable insights to guide low‐carbon transitions in emerging economies. 10.1002/sd.70049 http://creativecommons.org/licenses/by/4.0/
doi_str_mv 10.1002/sd.70049
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spellingShingle Environmental Sustainability and CO 2 Emissions in Mexico: Unveiling the Roles of Fiscal Policy, Digital Innovation, and Renewable Energy Transitions
Sohidul Islam
Md. Yousuf
Bablu Kumar Dhar
Reday Chandra Bhowmik
Md. Mustaqim Roshid
Shaharier Arafat Sumon
Sustainable Development
Environmental Sustainability and CO 2 Emissions in Mexico: Unveiling the Roles of Fiscal Policy, Digital Innovation, and Renewable Energy Transitions Sohidul Islam Md. Yousuf Bablu Kumar Dhar Reday Chandra Bhowmik Md. Mustaqim Roshid Shaharier Arafat Sumon Sustainable Development ABSTRACT Addressing environmental degradation has become a pressing priority in the era of global sustainability. As carbon dioxide (CO 2 ) emissions continue to escalate—particularly in emerging economies—identifying effective policy and technological pathways for emissions reduction is essential. This study investigates how economic growth, governance mechanisms, and technological advancement influence environmental sustainability in Mexico during the period 1980–2023. Mexico, a key emerging economy with ambitious climate goals, serves as a critical case for exploring these dynamics. Using annual time series data, the study employs the autoregressive distributed lag (ARDL) bounds testing method, supported by robustness checks using fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), and canonical cointegration regression (CCR) techniques. The findings reveal that fiscal decentralization and economic growth significantly contribute to environmental degradation, while renewable energy consumption and globalization are associated with reductions in CO 2 emissions. Although ICT expansion holds long‐term efficiency potential, it currently exacerbates emissions due to its dependence on fossil‐fuel‐based infrastructure. These results underscore the complex trade‐offs involved in aligning fiscal, technological, and energy policies with sustainability goals. The study concludes with clear policy recommendations: Mexico should reform its fiscal decentralization frameworks, invest in renewable‐powered ICT infrastructure, and accelerate clean energy development to fulfill its climate commitments. The findings offer actionable insights to guide low‐carbon transitions in emerging economies. 10.1002/sd.70049 http://creativecommons.org/licenses/by/4.0/
title Environmental Sustainability and CO 2 Emissions in Mexico: Unveiling the Roles of Fiscal Policy, Digital Innovation, and Renewable Energy Transitions
topic Sustainable Development
url https://onlinelibrary.wiley.com/doi/10.1002/sd.70049