Multidimensional drivers of sustainable development in South Asia : the dynamic roles of low-carbon energy, ICT, financial development, trade, and governance

Abstract

In recent years, the global energy landscape has undergone a significant shift toward low-emission, climate-resilient energy systems. This transformation aligns closely with the United Nations Sustainable Development Goals, particularly Goal 7, which advocates for universal access to affordable, reliable, sustainable, and modern energy. Hence, this study aims to evaluate the dynamic capability of low-carbon energy source consumption (LCARBON) on the sustainable development (SDI) of Bangladesh, India, Pakistan, and Sri Lanka. Additional variables of Information and Communication Technology (ICT), financial development (FD), Bayesian corruption (BCI) and trade openness (TRADE) are also included. The study considers the data period from 1990 to 2020 and applies robust econometric methodologies, including Common Correlated Effects Generalized Method of Moments (CCE-GMM) and Common Correlated Effects Mean Group (CCEMG). The findings reveal that LCARBON induces a dynamic favorable impact on SDI. ICT and FD help to improve SDI while TRADE imposes a threat to the SDI. The role of CORR was found to be inhibiting SDI with an insignificant coefficient. The panel causality test reveals bidirectional causal associations between LCARBON and SDI. By adopting a multidimensional sustainability measure and an integrated energy–ICT–finance framework, the study provides region-specific evidence on how complementary structural factors jointly shape long-run sustainable development in South Asia.