Investigating the Direct and Indirect Effects of Information and Communication Technology on Carbon Dioxide Emissions with an Emphasis on the Role of Renewable Energy

Articles in Press

Document Type : Research Paper

Authors

Razi University

10.22034/ecoj.2026.65467.3392

Abstract

This study investigates the impact of information and communication technology (ICT) indicators (Internet, mobile, and fixed telephone) on environmental quality in selected Asian countries that are the largest carbon dioxide emitters worldwide, over the period 1990–2022. Cointegration tests confirm a long-run relationship among the model variables. The N-shaped Environmental Kuznets Curve is validated for this group of countries, and renewable energy consumption significantly reduces CO₂ emissions. The results show that the direct effects of ICT indicators on CO₂ emissions are negative and significant, while indirect effects through the trade channel are positive and significant. The net effect remains negative up to a trade threshold level, becomes zero at the threshold, and turns positive thereafter, helping to resolve the ambiguity regarding ICT's environmental impact. Using a composite ICT index (based on principal component analysis) confirms the results, with trade exerting a positive and significant effect on CO₂ emissions. The Internet accounts for the largest share (66.25%) in the composite ICT index. Policymakers are advised to incorporate ICT and its benefits into sustainable development strategies and, given the trend toward globalization and rising trade, to promote renewable energy as a substitute for fossil fuels.

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Main Subjects

Applied Theories of Economics

Articles in Press, Accepted Manuscript
Available Online from 26 July 2026

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