Evaluating the effects of ICT core elements on CO2 emissions: Recent evidence from OECD countries

Abstract

This research aimed to inform policymakers about the actual climate relevance of the information and communication technology (ICT) ecosystem, which includes data centers and content provision, broadband networks, and consumer devices. To provide robust empirical evidence on the net environmental impact of these core ICT elements, we used OECD panel data for 34 Member States for the years 2002–2019 and panel fixed-effects regression models. In contrast to previous literature, we measured basic broadband and new fiber-based wireline broadband and 3G/4G mobile broadband network deployment. We also captured variations in end-user devices, ICT affinity, and famous online content. We found that, on average, the CO2-reducing effects appear to outweigh the CO2-increasing effects. In particular, we found that, in addition to the reduction effect associated with the use of basic broadband connections, there is a further, albeit smaller, reduction effect associated with new fiber-based broadband connections. Other ICT elements showed insignificant coefficient estimates, suggesting largely offsetting environmental impacts. Our main findings were subject to various robustness checks and were broadly consistent with previous literature using data from developed countries. Our results suggested that old and new broadband networks as enabling technology could generate positive environmental effects for society.