Abstract
This study aims to investigate the effects of information and communication technology (ICT), energy consumption, economic growth, and financial development on carbon dioxide emissions using 1993–2013 panel data from 12 Asian countries. The study employs a panel unit root test accounting for the presence of cross-sectional dependence and found that Internet usage is stationary and carbon dioxide emissions, energy consumption, gross domestic production (GDP), and financial development are first-difference stationary. The results form Pedroni panel cointegration test confirms that the variables are cointegrated. The results of the cointegration test indicate that the ICT-energy-GDP-carbon dioxide emissions nexus has long-run equilibrium. Both energy consumption and GDP have significant, positive impacts on carbon dioxide emissions; energy consumption and GDP have an effect on carbon dioxide emissions growth. ICT has a significantly negative effect on carbon dioxide emissions; the promotion of ICT becomes one of the important strategies introduced to mitigate carbon dioxide emissions for various countries. Causality results show that energy consumption, GDP, and financial development cause more carbon dioxide emissions. Energy consumption, GDP, and carbon dioxide emissions cause ICT. GDP causes financial development, whereas energy consumption and GDP are interdetermined. The feedback hypothesis exists in the region; those countries need to develop alternative energy to replace fossil fuels. ICT does not threaten the environment and ICT policy can be seen as a part of carbon dioxide emissions reduction policy.
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Notes
WEF, Global Information Technology Report 2016 (Geneva, 2016). Available from http://reports.weforum.org/global-information-technology-report-2016/.; ESCAP technical paper, published by Information and communications Technology and Disaster Risk Reduction Division, United Nations. Available from http://www.unescap.org/sites/default/files/State%20of%20ICT%20in%20Asia%20and%20the%20 Pacific%202016.pdf
The report of Asian Development Bank can be found in the following linkage: //www.adb.org/publications/key-indicators-asia-and-pacific-2016
“→” and “↔” means direction of causal relationship. “X → Y” represents that X causes Y. “X↔Y” represents that there is a causal path from X to Y and from Y to X
By 2030, ICTs could eliminate the equivalent of 12.1 billion tons of CO2 per year in five sectors- transport (30% of the total reduction), manufacturing (22%), agriculture and food (17%), buildings (16%), and energy (15%). The linkage of website is at http://pubdocs.worldbank.org/en/263291450295803203/ConnectionsNote-No30-web.pdf
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Lu, WC. The impacts of information and communication technology, energy consumption, financial development, and economic growth on carbon dioxide emissions in 12 Asian countries. Mitig Adapt Strateg Glob Change 23, 1351–1365 (2018). https://doi.org/10.1007/s11027-018-9787-y
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DOI: https://doi.org/10.1007/s11027-018-9787-y