Exploring the impact of digital technology, circular technology and public management on environmental sustainability in emerging economies

Environmental degradation significantly hampers economic sustainability by causing severe economic problems, prompting researchers to focus on environmental sustainability. Global economies aim to achieve net-zero emissions by 2060 to address climate change issues. Achieving this by 2050 depends on the transition from fossil fuels to renewable energy. Recently, the circular economy (CE) has emerged as a key concept for expediting sustainability. Prior research has emphasized CE practices in the corporate sector, overlooking the public sector. This study uses panel IFE and D-CCE tests to analyze the impact of CE and public management on CO₂ emissions in E-7 economies from 2000 to 2023, considering GDP per capita, urbanization, digital technologies, and energy transition. It examines long-term cointegration and heterogeneity among variables and employs a panel quantile regression (PQR) model to validate the findings. The results show that digital technology, CE, and public management significantly reduce carbon emissions, while GDP per capita, urbanization, and energy transition are crucial for long-term CO₂ emissions. Further analysis indicates that public management mediates the negative impact of digital technology, CE, and energy transition on carbon emissions in E-7 economies. These findings provide policymakers with insights into managing CE, energy transition, digital technology, and public administration to reduce CO₂ emissions without hindering economic growth and sustainable development. The practical implications concerning carbon neutrality and structural transitions are also discussed.