Information and communication technology and carbon emissions in China: The rebound effect of energy intensive industry

Abstract

The rebound effect of energy efficiency induced by information and communication technology (ICT) has attracted a wide range of academic attention, but it has mostly been examined at a theoretical level. We investigate this phenomenon by a cross-region cross-industry panel dataset in China. Using the LASSO method for variable selection and the static panel model of double fixed effects, our results indicate that ICT penetration significantly contributes to regional carbon emissions. More importantly, we demonstrate the positive effect is caused by the rebound effect of energy efficiency in the energy-intensive industry. Specifically, the spread of ICT promotes energy efficiency, further expanding energy demand and increasing carbon emissions in the non-metal manufacturing industry, resulting in the rebound effect of 0.9%. Drawing on these findings, we propose policy implications for promoting the green transformation of energy-intensive industries.