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Innovations and ICT: Do They Favour Economic Growth and Environmental Quality?

Author

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  • Carmen Díaz-Roldán

    (Faculty of Law and Social Sciences, University Castilla-La Mancha, 13071 Ciudad Real, Spain)

  • María del Carmen Ramos-Herrera

    (Department of Economic Analysis: Economic Theory, Autonomous University of Madrid Cantoblanco, 28049 Madrid, Spain)

Abstract

In this paper, we examine whether innovation and information and communication technology (ICT) contribute to reducing producer prices, thus promoting economic growth. We also check whether the contributions of ICT enhance environmental quality, leading to sustainable economic growth. To this end, we apply panel data techniques to the 27 EU countries over the period of recovery from the financial crisis. Our results suggest that technological progress leads to a significant reduction in producer prices. Moreover, controlling for some macroeconomics factors, ICT fosters per capita economic growth in the European countries. Finally, we found that the higher the ICT employment is, the lower greenhouse gas emissions are.

Suggested Citation

  • Carmen Díaz-Roldán & María del Carmen Ramos-Herrera, 2021. "Innovations and ICT: Do They Favour Economic Growth and Environmental Quality?," Energies, MDPI, vol. 14(5), pages 1-17, March.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:5:p:1431-:d:511424
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    More about this item

    Keywords

    ICT; economic growth; environmental quality; GHG emissions; ; Q55; F43; C23;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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