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The role of ICT and financial development in CO2 emissions and economic growth

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Abstract

This study explores the role of the information and communication technology (ICT) and financial development (FD) in both carbon emissions and economic growth for the G7 countries for the period 1990 to 2014. Using PMG, we found that the ICT has a long-run positive effect on emissions, while FD is a weak determinant. The interactive term between the ICT and FD produces negative coefficients. Also, both the variables are found to impact negatively on economic growth. However, their interaction shows that they have mixed effect on economic growth, i.e., positive in the short run and negative in the long run. Policy implications were designed based on these results.

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Notes

  1. Hausmann’s test result favors PMG.

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Authors and Affiliations

  1. European Xtramile Centre of African Studies, Liège, Belgium

    Ibrahim D. Raheem

  2. Rajagiri Business School, Rajagiri Valley Campus, Kochi, India

    Aviral Kumar Tiwari

  3. University of Castilla-La Mancha, Ciudad Real, Spain

    Daniel Balsalobre-Lorente

Authors
  1. Ibrahim D. Raheem
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  2. Aviral Kumar Tiwari
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  3. Daniel Balsalobre-Lorente
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Correspondence to Ibrahim D. Raheem.

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Responsible editor: Eyup Dogan

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Highlights

The role of ICT and financial development (FD) on both carbon emissions and economic growth for the G7 countries.

ICT has a long-run positive effect on emissions, while FD is estimated to be a weak determinant.

ICT and FD impact negatively on economic growth.

ICT has a long-run positive effect on CO2 emissions, while financial development seems to be a weak determinant of the carbon emissions.

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Raheem, I.D., Tiwari, A.K. & Balsalobre-Lorente, D. The role of ICT and financial development in CO2 emissions and economic growth. Environ Sci Pollut Res 27, 1912–1922 (2020). https://doi.org/10.1007/s11356-019-06590-0

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  • DOI: https://doi.org/10.1007/s11356-019-06590-0

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