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The Impact of Information and Communication Technology on Carbon Emissions in Emerging Markets

Author

Listed:
  • Kunofiwa Tsaurai

    (Department of Finance, Risk Management and Banking, University of South Africa, South Africa,)

  • Bester Chimbo

    (Department of Information Systems, School of Computing, University of South Africa, South Africa)

Abstract

This study explored the influence of information and communication technology (ICT) on carbon emissions in emerging markets using panel data analysis methods (fixed effects, random effects, pooled OLS, FMOLS) with annual secondary data spanning from 1994 to 2014. Additionally, the study investigated whether financial development and economic growth are channels through ICT has an influence on carbon emissions. Without interaction terms, ICT was found to have had a significant positive influence on carbon emissions across all the four panel data analysis methods. After introducing interaction terms, financial development was found to be a channel through which ICT increased carbon emissions under the fixed effects, random effects and the FMOLS. Under the pooled OLS, financial development was found to be a channel through ICT enabled the reduction in carbon emissions. Economic growth was found to be a channel through ICT lowered down carbon emissions in emerging markets across all the four panel data analysis methods.

Suggested Citation

  • Kunofiwa Tsaurai & Bester Chimbo, 2019. "The Impact of Information and Communication Technology on Carbon Emissions in Emerging Markets," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 320-326.
    • Handle: RePEc:eco:journ2:2019-04-40
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    References listed on IDEAS

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    2. Ibrahim D. Raheem & Aviral K. Tiwari & Daniel Balsalobre-lorente, 2019. "The Role of ICT and Financial Development on CO2 Emissions and Economic Growth," Working Papers of the African Governance and Development Institute. 19/058, African Governance and Development Institute..
    3. Ismahene Yahyaoui, 2024. "Does the Interaction Between ICT Diffusion and Economic Growth Reduce CO2 Emissions? An ARDL Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 661-681, March.
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    5. Asif Razzaq & Arshian Sharif & Paiman Ahmad & Kittisak Jermsittiparsert, 2021. "Asymmetric role of tourism development and technology innovation on carbon dioxide emission reduction in the Chinese economy: Fresh insights from QARDL approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 176-193, January.
    6. Lee, Chien-Chiang & Yuan, Zihao & Wang, Qiaoru, 2022. "How does information and communication technology affect energy security? International evidence," Energy Economics, Elsevier, vol. 109(C).
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    More about this item

    Keywords

    Information and Communication Technology; Carbon Emissions; Financial Development; Growth; Emerging Markets;
    All these keywords.

    JEL classification:

    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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