Time-varying impact of information and communication technology on carbon emissions

To investigate the time-varying net environmental impact of Information and Communication Technology (ICT), we apply the local linear dummy variable estimation (LLDVE) method using a panel data consisting of 63 countries for the period 1995-2017. Our analysis reveals that ICT increases CO2 emissions until 2004, while reducing them after 2008, regardless of the national income level. We further uncover that the positive environmental impact of ICT on high-income countries is about 10 times greater than that on middle-income countries over time. These findings indicate that the development of ICT should be encouraged to alleviate carbon emissions on a global scale, especially for middle-income countries, given the benefits of an improved technology absorption rate on the mitigation effect in high income countries.

Automated summary

Using a panel data of 63 countries from 1995 to 2017, we employ the local linear dummy variable estimation (LLDVE) method to investigate the time-varying net environmental impact of Information and Communication Technology (ICT). Our analysis reveals that, regardless of national income level, ICT increases CO2 emissions until 2004 but reduces them after 2008. We further show that the positive environmental impact of ICT on high-income countries is approximately 10 times greater than that on middle-income countries over time. These findings suggest that the development of ICT should be encouraged globally to mitigate carbon emissions, particularly in middle-income countries, considering the benefits of improved technology absorption rate in high-income countries.