The Impact of ICT on Carbon Dioxide Emissions: A Panel Smooth Transition Regression Model (PSTR)

Document Type : Research Paper

Authors

1 Associate Professor, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran

2 Professor, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran

3 Associate Professor, Faculty of Economics, Allameh Tabatabai University, Department of Energy, Agriculture and Environment Economics , Tehran, Iran

4 PhD student, Oil and Gas Economics, Faculty of Economics, Allameh Tabatabai University (Corresponding Author), Tehran, Iran

10.30465/jnet.2024.45679.2047

Abstract

Climate change is becoming a global crisis that can affect all aspects of human life on Earth, including the economy. So, protecting the environment and achieving sustainable development goals are now on the agenda of many governments.
This article uses the Panel Smooth Transition Regression Model to test the role of information communication technology as a transition variable. In this research, it is investigated whether ICT can decouple the economic growth from the increase in pollution by changing the effect of productivity on CO2 emission. The goal is to show whether policymakers can use the development of the digital economy around the world to achieve better environmental and economic outcomes. This study was conducted on a global scale and data from 108 countries was used from 2003 to 2019. The results show that the co2 emission follows a PSTR model with ICT as a transition variable that changes the effect of total factor productivity on co2 emission in favor of the environment. ICT development will improve carbon efficiency and reduce climate change.

Keywords

References

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new economy and trad
Volume 18, Issue 4 - Serial Number 4
January 2024
Pages 73-107

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History

  • Receive Date: 30 May 2023
  • Revise Date: 20 December 2023
  • Accept Date: 24 December 2023

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