Digitalization and environmental sustainability have emerged as issues of critical importance in contemporary economic development and social policy planning. While environmental sustainability requires managing the use of natural resources in a way that does not jeopardize the needs of future generations, the environmental outcomes of digitalization processes—particularly in developing economies—constitute an area that warrants careful investigation. This study aims to examine the long-run relationship between digitalization and environmental sustainability in N11 countries over the period 1997–2023.

In the analysis, the share of individuals using the internet in the total population is employed as a proxy for digitalization, while environmental sustainability is represented by per capita carbon dioxide (CO₂) emissions. In addition, economic growth, energy intensity, and the urbanization rate are included in the econometric model as control variables. Accounting for cross-sectional dependence and slope heterogeneity, the Durbin–Hausman panel cointegration test is applied, and the existence of a long-run relationship among the variables is identified. Subsequently, long-run coefficient estimates are obtained using the Augmented Mean Group (AMG) and Common Correlated Effects Mean Group (CCEMG) estimators.

The empirical findings indicate that an increase in the level of digitalization leads to higher carbon emissions in N11 countries. This result suggests that the digital transformation process generates a dynamic effect that increases environmental pressure by expanding energy demand and production volume. The economic growth variable is also found to be positive and statistically significant across all estimators, confirming that economic growth increases emissions through higher energy consumption and production activities. The positive and significant coefficient of energy intensity indicates that increased energy use directly raises carbon emissions and that the energy structure plays a decisive role in emission dynamics. In contrast, the urbanization rate is not found to be statistically significant, implying that the impact of urbanization on carbon emissions in N11 countries does not emerge in a clear and consistent manner.

Overall, the findings demonstrate that, under current conditions, digitalization in N11 countries functions not as a factor supporting environmental sustainability but rather as one that increases carbon emissions. This outcome highlights the necessity of supporting digital transformation with green energy policies, energy efficiency strategies, and environmentally friendly technological transition processes in order to generate environmental benefits. Furthermore, for policy measures to be effective, it is essential that policymakers take country-specific economic, institutional, and structural dynamics into account when formulating digitalization and environmental sustainability strategies.