The effect of ICT on CO2 emissions in emerging economies: does the level of income matters?

The effect of ICT on CO2 emissions in emerging economies: does the level of income matters? In the modern era of globalization, the rapid increase in information and telecommunication technologies (ICTs) contributes in various sectors of an economy; however, the environmental consequences of ICTs cannot be ignored. Therefore, the study investigates the nexus between ICTs, economic growth, financial development, and environmental quality in emerging economies. The novel feature of the study is that the interaction term of ICT is introduced with economic growth and financial development. The empirical findings of the study are based on panel mean group (MG) and augmented mean group (AMG) estimation methods from 1990 to 2015. The following empirical results are established: first the ICTs significantly affect CO2 emissions. Second, the moderating effect of ICT and financial development stimulate the level of CO2 emissions. Third, economic growth contributes CO2 emission; however, the interaction between ICT and GDP mitigates the level of pollution. Policy thresholds with the R&D in ICT sector are required to mitigate the level of CO2 emission. Introduction of green ICTs projects in the financial sector is a better choice to improve the energy efficiency. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Environmental Science and Pollution Research Springer Journals

The effect of ICT on CO2 emissions in emerging economies: does the level of income matters?

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Publisher
Springer Journals
Copyright
Copyright © 2018 by Springer-Verlag GmbH Germany, part of Springer Nature
Subject
Environment; Environment, general; Environmental Chemistry; Ecotoxicology; Environmental Health; Atmospheric Protection/Air Quality Control/Air Pollution; Waste Water Technology / Water Pollution Control / Water Management / Aquatic Pollution
ISSN
0944-1344
eISSN
1614-7499
D.O.I.
10.1007/s11356-018-2379-2
Publisher site
See Article on Publisher Site

Abstract

In the modern era of globalization, the rapid increase in information and telecommunication technologies (ICTs) contributes in various sectors of an economy; however, the environmental consequences of ICTs cannot be ignored. Therefore, the study investigates the nexus between ICTs, economic growth, financial development, and environmental quality in emerging economies. The novel feature of the study is that the interaction term of ICT is introduced with economic growth and financial development. The empirical findings of the study are based on panel mean group (MG) and augmented mean group (AMG) estimation methods from 1990 to 2015. The following empirical results are established: first the ICTs significantly affect CO2 emissions. Second, the moderating effect of ICT and financial development stimulate the level of CO2 emissions. Third, economic growth contributes CO2 emission; however, the interaction between ICT and GDP mitigates the level of pollution. Policy thresholds with the R&D in ICT sector are required to mitigate the level of CO2 emission. Introduction of green ICTs projects in the financial sector is a better choice to improve the energy efficiency.

Journal

Environmental Science and Pollution ResearchSpringer Journals

Published: May 31, 2018

References

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