Abstract
This study examined the spatial impact of the digital economy on the environmental quality of 36 African countries between 1995 and 2020. Methodologically, the study used the fixed effect instrumental variable regression model, spatial Durbin model and two alternative proximity matrices-contiguity and inverse distance. The empirical outcomes have produced three important findings: (1) there is evidence of spatial spillover on the impact of digital economy on environmental quality in Africa, i.e. third-country's digital economy plays a significant role in determining the environmental quality of host country; (2) spatial spillover of environmental quality in the region, which is due to interconnected ecosystems, shared natural resources, and transboundary environmental factors such as air and water pollution; (3) African countries are not independent when it comes to environmental issue, i.e., environmental quality of a specific country is being influenced by its drivers from neighbouring countries. The estimates are also robust to alternative measures of the digital economy and a different proximity matrix-inverse distance. The study suggests that African policymakers should undertake a joint task effort to enforce the regulatory framework on recycling electronic waste. Also, promoting the use of renewable energy sources, such as wind and solar, is essential for meeting the energy needs of digital infrastructure.