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Time-varying impact of information and communication technology on carbon emissions

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  • Sun, Xianming
  • Xiao, Shiyi
  • Ren, Xiaohang
  • Xu, Bing

Abstract

To investigate the time-varying net environmental impact of Information and Communication Technology (ICT), we apply the local linear dummy variable estimation (LLDVE) method using a panel data consisting of 63 countries for the period 1995–2017. Our analysis reveals that ICT increases CO2 emissions until 2004, while reducing them after 2008, regardless of the national income level. We further uncover that the positive environmental impact of ICT on high-income countries is about 10 times greater than that on middle-income countries over time. These findings indicate that the development of ICT should be encouraged to alleviate carbon emissions on a global scale, especially for middle-income countries, given the benefits of an improved technology absorption rate on the mitigation effect in high income countries.

Suggested Citation

  • Sun, Xianming & Xiao, Shiyi & Ren, Xiaohang & Xu, Bing, 2023. "Time-varying impact of information and communication technology on carbon emissions," Energy Economics, Elsevier, vol. 118(C).
    • Handle: RePEc:eee:eneeco:v:118:y:2023:i:c:s0140988322006211
    DOI: 10.1016/j.eneco.2022.106492
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    More about this item

    Keywords

    Information and communication technology (ICT); Carbon emissions; Time-varying coefficient function; Nonparametric panel data;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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