Can information and communication technology reduce CO₂ emission? A quantile regression analysis

Area of Science:

• Environmental Science
• Economics
• Information Technology

Background:

• Carbon dioxide (CO2) emission intensity is a critical environmental concern, particularly in developing economies.
• Information and Communications Technology (ICT) is increasingly recognized for its potential role in mitigating environmental impacts.
• China's rapid economic growth presents a unique case for studying the relationship between technological advancement and environmental sustainability.

Purpose of the Study:

• To empirically investigate the impact of ICT, specifically Internet and mobile phone penetration, on CO2 emission intensity in China.
• To analyze these impacts across different provincial regions (eastern, central, western) and quantiles.
• To provide evidence for developing countries on achieving economic development alongside carbon emission reduction through ICT.

Main Methods:

• Utilized China's provincial panel data from 2001-2016.
• Employed Internet penetration and mobile phone penetration as proxies for ICT.
• Applied quantile regression to estimate the model at five quantiles (0.1, 0.25, 0.5, 0.75, 0.9).

Main Results:

• National-level Internet penetration significantly reduced CO2 emission intensity across all analyzed quantiles.
• Internet penetration showed significant negative effects in eastern and central provinces, with a more pronounced effect in central regions.
• Mobile phone penetration demonstrated impacts generally consistent with Internet penetration on CO2 emission intensity.

Conclusions:

• ICT adoption, particularly Internet and mobile phone penetration, is an effective tool for reducing CO2 emission intensity in China.
• The effectiveness of ICT in reducing emissions varies regionally, highlighting the need for tailored strategies.
• Developing countries can leverage ICT to pursue economic development while simultaneously addressing carbon emission reduction goals.