The effects of internet usage and economic growth on CO2 emissions in OECD countries: a panel investigation

Salahuddin, Mohammad and Alam, Khorshed and Ozturk, Ilhan (2016) The effects of internet usage and economic growth on CO2 emissions in OECD countries: a panel investigation. Renewable and Sustainable Energy Reviews, 62. pp. 1226-1235. ISSN 1364-0321

Abstract

This paper estimates the short- and long-run effects of Internet usage and economic growth on carbon dioxide (CO2) emissions using OECD panel data for the period 1991–2012. The Pedroni panel cointegration test confirms that the variables are cointegrated. Although Pooled Mean Group (PMG) estimates indicate a positive significant long-run relationship between Internet usage and CO2 emissions, the coefficient is very small and no causality exists between them, which both imply that the rapid growth in Internet usage is still not an environmental threat for the region. The study further indicates that economic growth has no significant short-run and long-run effects on CO2 emissions. Internet use stimulates both financial development and trade openness. The findings offer support in favor of the argument that OECD countries can promote their Internet usage without being significantly concerned about its environmental consequences. But the future emissions effect of Internet usage cannot be ruled out, as is evident from the variance decomposition analysis. Therefore, this study recommends that in addition to boosting the existing measures for combating CO2 emissions, OECD countries need to use ICT equipment not to simply reduce its own carbon footprint but also to exploit ICT-enabled emissions abatement potential to reduce emissions in other sectors, such as the power, energy, agricultural, transport and service sectors.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Tied first place winner for the USQ School-Specific 2016 Publication Excellence Awards for Journal Articles - School of Commerce. Files associated with this item cannot be displayed due to copyright restrictions.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 15 Jun 2016 00:57
Last Modified: 06 Apr 2017 02:31
Uncontrolled Keywords: CO2 emissions; internet usage; OECD countries; economic growth
Fields of Research : 05 Environmental Sciences > 0502 Environmental Science and Management > 050204 Environmental Impact Assessment
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
08 Information and Computing Sciences > 0806 Information Systems > 080606 Global Information Systems
Identification Number or DOI: 10.1016/j.rser.2016.04.018
URI: http://eprints.usq.edu.au/id/eprint/29355

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