THE IMPACT OF DIGITAL ECONOMY, E-GOVERNANCE, AND GOVERNANCE QUALITY ON ENVIRONMENTAL SUSTAINABILITY IN EMERGING ASIAN ECONOMIES: A PANEL DATA ANALYSIS

Abstract

Environmental sustainability has become a major challenge for emerging Asian economies due to rapid industrialization, urbanization, population growth, and increasing carbon emissions. At the same time, digital transformation and e-governance are reshaping economic and administrative systems across Asia. This study investigates the impact of digital economy, e-governance, and governance quality on environmental sustainability in emerging Asian economies using panel data from 2005–2025.The study employs panel econometric techniques including Fixed Effects Model (FEM), Random Effects Model (REM), Panel ARDL, Fully Modified Ordinary Least Squares (FMOLS), and Dynamic Ordinary Least Squares (DOLS). The sample includes major emerging Asian economies including China, India, Pakistan, Bangladesh, Indonesia, Malaysia, Thailand, Vietnam, and the Philippines.The findings indicate that digital economy expansion, improved e-governance, and better governance quality significantly enhance environmental sustainability by reducing carbon emissions and improving energy efficiency. Governance quality also moderates the relationship between digitalization and environmental sustainability. However, weak institutions and unequal digital infrastructure reduce policy effectiveness in several developing Asian economies.The study provides important policy implications for sustainable development, green digital transformation, and institutional reforms in Asia.