Carbon-economic inequality in global ICT trade

The expansion of information and communications technology (ICT) trade has contributed to rising trade imbalances and international tensions. A detailed assessment of the potential carbon and economic impacts of ICT trade is pertinent. We assess to what extent and how the carbon costs and economic benefits embodied in ICT trade were unevenly distributed among global regions in the period 2000-2018 using multiregional input-output models. We show that in 2018, emerging economies received 82% of the CO2 emissions while developed economies gained 42% of the value-added in ICT exports. This carbon-economic inequality (CEI) decreased (i.e., improved) by 16% from 2000 to 2018, arising from global production fragmentation, with developed economies retaining downstream high value-added ICT marketing but outsourcing upper- and middle-stream carbon-intensive material extraction and manufacturing to emerging economies. This study provides insights for enhancing negotiations and cooperation among global regions to light a path toward sustainable ICT trade.

Automated summary

The carbon costs and economic benefits of ICT trade are unevenly distributed among global regions, with emerging economies bearing the carbon emissions and developed economies gaining the value-added. However, this inequality has decreased from 2000 to 2018, partly due to global production fragmentation.