The Economic Complexity–Carbon Neutrality Nexus in ASEAN Countries: The Roles of ICT Infrastructure, Foreign Direct Investment, Energy Structure, and Financial Market Developments

Abstract

The rapidly deteriorating environmental challenges have necessitated efforts to integrate technological, economic, and financial infrastructure to achieve environmental quality. However, environmental stakeholders have raised concerns about whether or not contemporary policy mechanisms can ensure sustainable development and net‐zero compliance. The current research investigates the role of eco‐friendly ICT, energy structure, economic complexity, financial development, population, and financial markets development on lowering climate change in ASEAN economies. To provide a comprehensive theoretical and analytical review of our research objectives, the current research employs Driscoll–Kraay standard errors, FGLS regression, and PCSEs as contemporary econometric approaches to reveal that ICT and economic complexity overcome climate change, whereas energy structure, foreign direct investments, population, and financial markets exacerbate ecological challenges. We conclude the current research by reporting novel policy suggestions to align economic, environmental, and macroeconomic goals to achieve sustainable development and net‐zero transition.