THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY ON CARBON EMISSIONS IN EMERGING MARKETS

Kunofiwa Tsaurai,Bester Chimbo

doi:10.32479/ijeep.7677

Abstract

This study explored the influence of information and communication technology (ICT) on carbon emissions in emerging markets using panel data analysis methods (fixed effects, random effects, pooled OLS, FMOLS) with annual secondary data spanning from 1994 to 2014. Additionally, the study investigated whether financial development and economic growth are channels through ICT has an influence on carbon emissions. Without interaction terms, ICT was found to have had a significant positive influence on carbon emissions across all the four panel data analysis methods. After introducing interaction terms, financial development was found to be a channel through which ICT increased carbon emissions under the fixed effects, random effects and the FMOLS. Under the pooled OLS, financial development was found to be a channel through ICT enabled the reduction in carbon emissions. Economic growth was found to be a channel through ICT lowered down carbon emissions in emerging markets across all the four panel data analysis methods.

Highlights

The role of information and communication technology (ICT) on economic growth is a subject area that recently has been of interest to economists and policy makers
The study investigated whether financial development and economic growth are channels through ICT has an influence on carbon emissions
Financial development was found to be a channel through which ICT increased carbon emissions under the fixed effects, random effects and the FMOLS

Summary

INTRODUCTION

The role of information and communication technology (ICT) on economic growth is a subject area that recently has been of interest to economists and policy makers. Tsaurai and Chimbo: The Impact of Information and Communication Technology on Carbon Emissions in Emerging Markets Most of these empirical studies assumed that there is a linear relationship between ICT and carbon emissions, an assumption which was proven to be untrue by Khan et al (2018). (5) It investigated whether economic growth and financial development are channels through which ICT can influence carbon emissions in emerging markets, an objective which was investigated by Khan et al (2018) using different variables, proxies, methods and data set. The study helps emerging markets to develop ICT policies that reduces carbon emissions.

INFLUENCE OF ICT ON CARBON

ICT-CARBON EMISSIONS NEXUS –AN

PRE-ESTIMATION DIAGNOSTICS

RESEARCH METHODOLOGY

Findings

CONCLUSION