ICT, Financial Globalization and Ecological Sustainability in Oman: Novel Evidence Based on Load Capacity Factor

Abstract

The current study aims to explore the interconnectedness between financial globalization, information and communication technology (ICT), non-renewable energy consumption, and ecological sustainability in Oman over the quarterly data from 1998Q1 to 2022Q4. While there have been numerous studies that have tested the ecological sustainability determinants in Oman using indicators like carbon emissions (CO2) and ecological footprint, a comprehensive evaluation of the Load Capacity Factor (LCF) in the context of Oman remains notably absent. LCF captures both the supply and demand aspects of nature, offering a better analysis of ecological sustainability. This work fills the gap by examining the impact of financial globalization, ICT, and non-renewable energy on ecological sustainability in the case of Oman. The findings of this work show that ICT has been observed to have a positive effect on environmental sustainability by increasing LCF. Furthermore, we found that financial globalization has a positive impact on LCF, while nonrenewable energy use has been found to have adverse effects on LCF. The findings suggest that policymakers should encourage the use of renewable energy sources and accelerate the transition to digital technologies.