How do information and communication technology, human capital and renewable energy affect CO₂ emission; New insights from BRI countries

How do information and communication technology, human capital and renewable energy affect CO₂ emission; New insights from BRI countries

18 February 2024 | Zhen You, Lei Li, Muhammad Waqas
This study examines the impact of information and communication technology (ICT), renewable energy consumption (REC), human capital (HC), and economic growth (EG) on CO₂ emissions in 64 Belt and Road Initiative (BRI) countries from 2000 to 2021. Using panel data and econometric methods such as the Augmented Mean Group (AMG) estimator, Mean Group (MG) estimator, and Dumitrescu-Hurlin panel causality, the study finds that ICT, HC, and REC are inversely related to CO₂ emissions, while EG is positively associated with CO₂ emissions. The interaction term of EG with ICT, REC, and HC has a negative impact on CO₂ emissions. The study also reveals an inverted U-shaped relationship between ICT and CO₂ emissions in BRI countries. Causality results show bidirectional cause-and-effect relationships between ICT, REC, and HC, but a unidirectional causal link between EG and CO₂ emissions. The findings emphasize the importance of implementing advanced ICT and REC in the industrial sector to reduce energy consumption and boost economic growth while promoting environmental sustainability. Policy recommendations include increasing internet access, expanding renewable energy sources, and promoting environmental education to achieve carbon neutrality and sustainable development goals.This study examines the impact of information and communication technology (ICT), renewable energy consumption (REC), human capital (HC), and economic growth (EG) on CO₂ emissions in 64 Belt and Road Initiative (BRI) countries from 2000 to 2021. Using panel data and econometric methods such as the Augmented Mean Group (AMG) estimator, Mean Group (MG) estimator, and Dumitrescu-Hurlin panel causality, the study finds that ICT, HC, and REC are inversely related to CO₂ emissions, while EG is positively associated with CO₂ emissions. The interaction term of EG with ICT, REC, and HC has a negative impact on CO₂ emissions. The study also reveals an inverted U-shaped relationship between ICT and CO₂ emissions in BRI countries. Causality results show bidirectional cause-and-effect relationships between ICT, REC, and HC, but a unidirectional causal link between EG and CO₂ emissions. The findings emphasize the importance of implementing advanced ICT and REC in the industrial sector to reduce energy consumption and boost economic growth while promoting environmental sustainability. Policy recommendations include increasing internet access, expanding renewable energy sources, and promoting environmental education to achieve carbon neutrality and sustainable development goals.
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