LAUSR

The main motivation behind this study is the importance of tourism and ICT industry in the economic development of a country and their potential effects on the country’s environmental quality in the digital era. For empirical analysis, the study applies FMOLS, DOLS, and quantile regression techniques for Asian economies. The findings of the study confirmed that tourism and digitalization improve environmental quality in FMOLS and DOLS models. In the basic quantile regression model, the estimates attached to tourism arrival are positive 5th quantile to 40th quantile and then turn negative from 60th quantile and onwards. Likewise, the estimates attached to tourism receipts in the robust quantile regression model are positive from quantile 5th to quantile 20th and negative and increasing from quantile 30th and onwards. Conversely, the estimates of digital infrastructure are insignificant in the basic quantile model at all quantiles except the 95th. However, the estimated coefficients of digital infrastructure in the robust model are negative and rising from 40th quantile to 70th quantile and negative and declining from 80th quantile to 95th quantile. In general, we can say that as the tourism and digital sectors grow, the CO2 emissions decline.