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The nexus between information technology and environmental pollution: Application of a new machine learning algorithm to OECD countries

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  • Magazzino, Cosimo
  • Mele, Marco
  • Morelli, Giovanna
  • Schneider, Nicolas

Abstract

This paper examines the linkages among Information and Communication Technologies (ICT) penetration, electricity consumption, economic growth, urbanization, and environmental pollution for 25 OECD countries over the 1990–2017 period. We first conduct several panel data analyses and then write and apply a new Machine Learning (ML) algorithm. Empirical findings show that ICT usage enhances economic growth, and it is also a crucial driver of electricity consumption, which, in turn, translates into polluting emissions. The ML results highlight internet usage emerges as a substantial CO2 emissions-enabler, thus corroborating our panel data findings. Potential policy measures are discussed.

Suggested Citation

  • Magazzino, Cosimo & Mele, Marco & Morelli, Giovanna & Schneider, Nicolas, 2021. "The nexus between information technology and environmental pollution: Application of a new machine learning algorithm to OECD countries," Utilities Policy, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:juipol:v:72:y:2021:i:c:s0957178721000904
    DOI: 10.1016/j.jup.2021.101256
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    9. Yongming Zhu & Lanxiao Niu & Zheyun Zhao & Jing Li, 2022. "The Tripartite Evolution Game of Environmental Governance under the Intervention of Central Government," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
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    More about this item

    Keywords

    Internet usage; Electricity consumption; CO2 emissions; Urbanization; OECD; Panel data; Machine learning;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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