Effects of information and communication technology and real income on CO2 emissions: The experience of countries along Belt and Road

Abstract

In recent years, information and communication technology (ICT) and its impact on society are debated; however, little research has been conducted regarding the future environmental consequences of ICT in various countries. However, this study presented the empirical analysis of the relationship between ICT, real income, and CO2 emissions while considering foreign direct investment and international trade. The study presents an innovative methodological approach by introducing the interaction of ICT with foreign direct investment and international trade. For empirical estimation, this study used the generalized least-square method in 59 countries along Belt and Road from 1990 to 2016. The results summarized that ICT mitigates the level of CO2 emissions in countries along Belt and Road. Further, the moderating effect of ICT and foreign direct investment reduces CO2 emissions and the interaction between ICT and international trade does the same. Based on the policy perspective, the countries along Belt and Road need to strategically focus on promoting trade and investment in the ICT sector and also on innovations to promote sustainable economic development.