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The nexus between information technology and environmental pollution: Application of a new machine learning algorithm to OECD countries

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  • Magazzino, Cosimo
  • Mele, Marco
  • Morelli, Giovanna
  • Schneider, Nicolas

Abstract

This paper examines the linkages among Information and Communication Technologies (ICT) penetration, electricity consumption, economic growth, urbanization, and environmental pollution for 25 OECD countries over the 1990–2017 period. We first conduct several panel data analyses and then write and apply a new Machine Learning (ML) algorithm. Empirical findings show that ICT usage enhances economic growth, and it is also a crucial driver of electricity consumption, which, in turn, translates into polluting emissions. The ML results highlight internet usage emerges as a substantial CO2 emissions-enabler, thus corroborating our panel data findings. Potential policy measures are discussed.

Suggested Citation

  • Magazzino, Cosimo & Mele, Marco & Morelli, Giovanna & Schneider, Nicolas, 2021. "The nexus between information technology and environmental pollution: Application of a new machine learning algorithm to OECD countries," Utilities Policy, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:juipol:v:72:y:2021:i:c:s0957178721000904
    DOI: 10.1016/j.jup.2021.101256
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    2. Jingjing Xie & Yujiao Xian & Guowei Jia, 2023. "An investigation into the public acceptance in China of carbon capture and storage (CCS) technology," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 28(5), pages 1-22, June.
    3. Magazzino, Cosimo & Mele, Marco & Schneider, Nicolas, 2022. "A new artificial neural networks algorithm to analyze the nexus among logistics performance, energy demand, and environmental degradation," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 315-328.
    4. Magazzino, Cosimo & Mele, Marco, 2022. "Can a change in FDI accelerate GDP growth? Time-series and ANNs evidence on Malta," The Journal of Economic Asymmetries, Elsevier, vol. 25(C).
    5. Feng, Ting & Xiong, Ruoyu & Huan, Peng, 2023. "Productive use of natural resources in agriculture: The main policy lessons," Resources Policy, Elsevier, vol. 85(PA).
    6. Yongming Zhu & Lanxiao Niu & Zheyun Zhao & Jing Li, 2022. "The Tripartite Evolution Game of Environmental Governance under the Intervention of Central Government," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
    7. Obiakor, Rowland Tochukwu & Uche, Emmanuel & Das, Narasingha, 2022. "Is structural innovativeness a panacea for healthier environments? Evidence from developing countries," Technology in Society, Elsevier, vol. 70(C).
    8. Mesagan, Ekundayo Peter & Olunkwa, Chidi Ndubuisi, 2022. "Heterogeneous analysis of energy consumption, financial development, and pollution in Africa: The relevance of regulatory quality," Utilities Policy, Elsevier, vol. 74(C).
    9. Li, Siying & Cifuentes-Faura, Javier & Talbi, Besma & Sadiq, Muhammad & Si Mohammed, Kamel & Bashir, Muhammad Farhan, 2023. "Dynamic correlated effects of electricity prices, biomass energy, and technological innovation in Tunisia's energy transition," Utilities Policy, Elsevier, vol. 82(C).
    10. Marco Mele & Cosimo Magazzino & Nicolas Schneider & Antonia Rosa Gurrieri & Hêriş Golpira, 2022. "Innovation, income, and waste disposal operations in Korea: evidence from a spectral granger causality analysis and artificial neural networks experiments," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 427-459, July.
    11. Marti, Luisa & Puertas, Rosa, 2023. "Analysis of European competitiveness based on its innovative capacity and digitalization level," Technology in Society, Elsevier, vol. 72(C).
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    More about this item

    Keywords

    Internet usage; Electricity consumption; CO2 emissions; Urbanization; OECD; Panel data; Machine learning;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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