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ICT-trade and pollution in Africa: Do governance and regulation matter?

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  • Evans, Olaniyi
  • Mesagan, Ekundayo Peter

Abstract

ICT has become a significant factor in the transition towards a low-carbon society in the modern era of increased digitalisation and clamour for environmental sustainability. Considering the significance of this digital transition in pollution abatement, we investigate the moderating effects of effective governance and regulation on the relationship between ICT-trade and pollution for 31 African countries from 2000 to 2020 by employing dynamic heterogeneous panel models robust to cross-sectional dependence. The empirical result suggests that, without adjustment for cross-sectional dependence, ICT-trade increases short and long-run pollution. Also, effective governance enhances pollution over the short and long run, while regulation lowers environmental pollution in the short term but increases long-run pollution. Further, government effectiveness moderates the effect of ICT-trade on pollution in the short and long run, whereas regulation only moderates the effect of ICT-trade on pollution in the long run. Conversely, having adjusted for cross-sectional dependence, ICT-trade, effective governance and regulation substantially lower pollution. Further, effective governance and regulation play essential roles in fostering the effects of ICT-trade on environmental pollution. Therefore, we recommend sensitivity to ICT-trade and fostering government effectiveness and regulation to curtail the adverse impact of ICT-trade on the environment.

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  • Evans, Olaniyi & Mesagan, Ekundayo Peter, 2022. "ICT-trade and pollution in Africa: Do governance and regulation matter?," Journal of Policy Modeling, Elsevier, vol. 44(3), pages 511-531.
    • Handle: RePEc:eee:jpolmo:v:44:y:2022:i:3:p:511-531
    DOI: 10.1016/j.jpolmod.2022.06.003
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    Cited by:

    1. Yinhui Wang & Yugang He, 2023. "Does Information and Communication Technology Trade Openness Matter for China’s Energy Transformation and Environmental Quality?," Energies, MDPI, vol. 16(4), pages 1-16, February.
    2. Mesagan, Ekundayo Peter & Alimi, Olorunfemi Yasiru & Vo, Xuan Vinh, 2022. "The asymmetric effects of exchange rate on trade balance and output growth," The Journal of Economic Asymmetries, Elsevier, vol. 26(C).
    3. Bruno Ibekilo & Chukwunonso Ekesiobi & Precious Muhammed Emmanuel, 2023. "Heterogeneous assessment of urbanisation, energy consumption and environmental pollution in Africa: the role of regulatory quality," Economic Change and Restructuring, Springer, vol. 56(6), pages 4421-4444, December.
    4. Mesagan, Ekundayo Peter & Vo, Xuan Vinh, 2023. "Does natural resource rent and consumption interplay worsen Africa's pollution? Heterogeneous panel approach with cross-sectional dependence," Resources Policy, Elsevier, vol. 82(C).
    5. Ekundayo Peter Mesagan & Xuan Vinh Vo & Precious Muhammed Emmanuel, 2023. "The technological role in the growth-enhancing financial development: evidence from African nations," Economic Change and Restructuring, Springer, vol. 56(1), pages 657-680, February.
    6. Bruno N. Ibekilo & Chukwunonso Ekesiobi & Precious M. Emmanuel, 2023. "Heterogeneous Assessment of Urbanisation, Energy Consumption and Environmental Pollution in Africa: the Role of Regulatory Quality," Working Papers of the African Governance and Development Institute. 23/056, African Governance and Development Institute..
    7. Bruno N. Ibekilo & Chukwunonso Ekesiobi & Precious M. Emmanuel, 2023. "Heterogeneous Assessment of Urbanisation, Energy Consumption and Environmental Pollution in Africa: the Role of Regulatory Quality," Working Papers 23/056, European Xtramile Centre of African Studies (EXCAS).
    8. Evans, Olaniyi & Nwaogwugwu, Isaac & Vincent, Olusegun & Wale-Awe, Olawale & Mesagan, Ekundayo & Ojapinwa, Taiwo, 2023. "The socio-economics of the 2023 fuel subsidy removal in Nigeria," MPRA Paper 118360, University Library of Munich, Germany.

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