Panel Data Econometric Analysis of The Determinants of Carbon Emission Intensity: Integrating Digital Transformation, Structural Shift, and Macroeconomic Dynamics
DOI:
10.51601/ijersc.v7i5.1082Published:
2026-10-02Downloads
Abstract
This study analyzes the relationship between digitalization, structural transformation, and carbon emission intensity in six ASEAN countries, namely Indonesia, Malaysia, Thailand, the Philippines, Vietnam, and Cambodia. The study uses annual panel data for the period 2004–2024, with the main estimation period covering 2010–2024. Carbon emission intensity is used as the dependent variable, while the number of internet users, industry value added, urban population, GDP per capita, international trade, and services sector value added are used as independent variables. All variables are transformed into natural logarithms so that the coefficients can be interpreted as elasticities. Estimation is conducted using the Fixed Effects Model with period fixed effects and Panel EGLS with period weights following model selection tests. The results show that digitalization, proxied by the number of internet users, has a positive but statistically insignificant relationship with carbon emission intensity. In contrast, industry value added, urban population, GDP per capita, and international trade have positive and significant relationships. Services sector value added has a negative and significant relationship with carbon emission intensity. These findings indicate that structural transformation toward the services sector is associated with lower emission intensity, while industrial expansion, urbanization, economic growth, and trade are associated with increased carbon emission intensity in the countries examined.
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