Does ICT change the relationship between total factor productivity and CO2 emissions? Evidence based on a nonlinear model

Tunisia is experiencing rapid social and economic expectations. The penetration of information and communication technology (ICT) might be useful for green economic development. This paper takes a novel use of the logistic smooth transition regression model in studying the pattern from the link between economic growth and CO2 emissions over the period 1970-2018. The results indicate that the pattern of CO2 emissions follows a nonlinear model with ICT as a transition variable affecting the relationship between total factor productivity (TFP) and CO2 emissions. More ICT use improves carbon efficiency. The results showed that ICT could boost economic growth and mitigate climate change.

Automated summary

The study revealed that ICT as a transition variable affects the relationship between total factor productivity (TFP) and CO2 emissions, resulting in improved carbon efficiency. The nonlinear model of CO2 emissions with more ICT usage could boost economic growth and help mitigate climate change.