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The role of information communication technologies on carbon emissions in OECD countries: new evidence from method of moments quantile approach

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Abstract

This paper aims to investigate the effects of information and communication technologies (ICT) on carbon emissions (CO2) in the OECD area. For this purpose, a comprehensive panel data set is utilized covering the 1994–2018 period for 38 countries and a novel method of moments panel quantile regression model which allows to account for fixed effects and endogenous explanatory variables. Results suggest that the ICT, represented by the percentage of individuals using the Internet in the total population, contributes positively to CO2 emissions up to 0.40th quantile and has no effect after this level. The results imply that countries with relatively low per capita emissions are susceptible to the rebound effects, in which better energy efficiency results in increased demand for energy and ICT-related items, hence increasing carbon emissions. At this juncture, one policy idea would be to include a carbon tax into the per-unit purchase price of smartphones, tablets, smart gadgets, and any other relevant ICT items. Additionally, this legislation can assist decrease conspicuous consumption, which can be viewed as a trigger for the demand for ICT products. Additionally, these countries should encourage enterprises to invest in and employ energy-efficient technologies through tax incentives or subsidies.

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Source: Worldbank)

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Data availability

All data used in the study is derived from OECD statistics that are open source. The analysis is done by using the software of STATA 13, and the software is licensed. The authors are ready to present the data and reports of analysis if requested.

Notes

  1. In the study of Salahuddin et al. (2016b), although the results of the analysis reveal that ICT usage and CO2 emissions are positively related, the authors indicate that this relationship can be neglected as the coefficient of the ICT variable is modest.

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  1. Department of Economics, Antalya Bilim University, Çıplaklı Mah. Akdeniz Bulvarı, No: 290 A Döşemealtı, Antalya, Turkey

    Firat Yilmaz & Peyman Uysal

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  1. Firat Yilmaz
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  2. Peyman Uysal
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Contributions

All authors contributed to the study’s conception and design. Material preparation, data collection, and analysis were performed by Firat Yılmaz. The introduction part and the related literature review were written by Peyman Uysal. Both authors commented on previous versions of the manuscript and made contributions to the discussion and conclusion parts of the study. The required revisions were done by Peyman Uysal. All authors read and approved the final manuscript.

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Correspondence to Peyman Uysal.

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Yilmaz, F., Uysal, P. The role of information communication technologies on carbon emissions in OECD countries: new evidence from method of moments quantile approach. Environ Sci Pollut Res 29, 81396–81417 (2022). https://doi.org/10.1007/s11356-022-21279-7

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