The relationship between natural resource rents and environmental performance: Can information and communication technology mitigate the "resource curse"?

The study explores the "resource curse," with a focus on how information and communication technology (ICT) moderates the relationship between environmental performance (EP) and natural resource rents (NRR). Using a panel dataset of 102 nations from 2007 to 2017, the study employs the Instrumental Variable Generalized Method of Moments (IV GMM) approach to handle endogeneity concerns. EP is measured using the Environmental Performance Index (EPI), showing that a 1 % increase in NRR reduces the EPI by one unit. However, ICT development significantly mitigates this adverse impact, especially in low- and lower-middle-income nations. Robustness checks, such as the Lewbel 2SLS and Driscoll-Kraay techniques, support these findings. The research emphasizes the importance of ICT in the promotion of resource conservation and environmental result improvements. Policy implications highlight the need for investments in ICT infrastructure and the integration of digital solutions into environmental management, particularly in resource-dependent countries. This study adds to the discourse on how to balance utilization with environmental sustainability in the digital era.