Effect of information and communication technology and electricity consumption on green total factor productivity

Abstract

Information and communication technology (ICT) supported by the Internet and mobile phone usage has become a significant factor influencing the intelligent development of the green economy in countries along the Belt and Road (hereafter referred to as B&R countries).Furthermore, electricity provides momentum for sustainable development. Therefore, this study examines whether ICT and electricity consumption affect green total factor productivity (GTFP).We explore the influence of Internet usage (INTER), mobile cellular phone usage (MOB),and electricity consumption (EPC) on GTFP in B&R countries from 2000 to 2021 using the dynamic panel system generalized method of moments (GMM) model. The results showed that MOB significantly inhibited GTFP, whereas INTER and EPC did not affect GTFP in lower-middle-income economies.In upper-middle-income economies, INTER and EPC inhibited GTFP, whereas MOB significantly promoted GTFP. Furthermore, INTER significantly promoted GTFP, MOB significantly inhibited GTFP, and EPC did not affect GTFP in high-income economies.The results based on EPC regulation showed that the interaction of ICT and EPC played a role in promoting GTFP in lower-middle-income economies.The opposite result was observed in upper-middle-income economies. Furthermore, the INTER and EPC interaction items promoted GTFP in high-income economies, whereas the MOB and EPC interaction items inhibited the GTFP.To improve the GTFP of the B&R countries, countries should improve ICT infrastructure and promote the efficiency of green energy use, so as to enable green development with ICT.