The Effects of ICT on CO2 Emissions Along with Economic Growth, Trade Openness and Financial Development in Korea

doi:10.15266/KEREA.2021.30.2.299

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2021 Vol.30, Issue 2 Preview Page Next Page

Research Paper

The Effects of ICT on CO₂ Emissions Along with Economic Growth, Trade Openness and Financial Development in Korea ICT가 CO₂ 배출에 미치는 영향: 경제성장, 무역개방성, 금융발전과의 연관관계하에서 분석: 김수이*
Suyi Kim*; *홍익대학교 상경대학 상경학부 부교수, 교신저자(e-mail:suyikim@hongik.ac.kr)

*Associate Professor, School of Business Management, College of Business Management, Hongik University, Corresponding author(e-mail: suyikim@hongik.ac.kr)

30 June 2021. pp. 299-323

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Abstract

This study investigated the impact of information and communication technology (ICT), trade openness, financial development, and economic growth on CO₂ emissions in Korea from 1990 to 2016. The cointegration relationship of the variables was confirmed by an autoregressive distributed lag (ARDL) bounds test. In the long-run, economic growth was statistically significant factor in the increase in CO₂ emissions, while other factors, as well as ICT, did not significant factors in the changes in CO₂ emissions. In the long-run, a link between economic growth and CO₂ emissions has been confirmed, but other factors, including ICT, have not been able to confirm the link between CO₂ emissions in the long-run. Meanwhile, in the short-run, economic growth and ICT increased CO₂ emissions, and financial development led to a decrease in CO₂ emissions. Trade openness did not have a significant effect on CO₂ emissions in the short-run as in the long-run. In particular, ICT did not contribute to the reduction of CO₂ emissions in the short-run as well as the long-run. In order to induce CO₂ mitigation through ICT, the development and deployment of technology that efficiently save energy by using ICT should be further promoted.

Keywords

CO₂ emissions

GDP

ICT

Trade openness

Financial development

ARDL

본 연구는 1990년부터 2016년까지 한국의 정보통신기술(ICT), 무역 개방성, 금융 발전, 경제성장이 CO₂ 배출량에 미치는 영향을 분석하였다. 변수의 공적분관계는 Autoregressive distributed lag (ARDL)공적분 검증을 통해 확인되었다. 장기적으로 경제성장과 CO₂ 배출 간에는 연관관계가 확인되었지만, ICT를 비롯한 다른 요인은 장기적으로 CO₂ 배출량과의 연관관계를 확인하지 못하였다. 한편, 단기적으로 경제성장, ICT는 CO₂ 배출량을 증가시켰으며, 금융발전은 CO₂ 배출량 감소를 가져왔다. 무역개방성은 장기와 마찬가지로 단기에도 CO₂ 배출량에 큰 영향을 미치지 못하였다. 특히 ICT는 장기뿐만 아니라 단기적으로도 CO₂ 배출량 감소에 기여하지 못하였다. ICT를 통한 CO₂ 감축을 유도하기 위해서는 ICT를 활용하여 효율적으로 에너지를 절약할 수 있는 기술의 개발과 보급이 더욱 촉진되어야 할 것이다.

키워드

CO₂ 배출

GDP

ICT

무역

금융발전

ARDL

References

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Information

Publisher :Environmental and Resource Economics Review
Publisher(Ko) :자원 · 환경경제연구
Journal Title :자원·환경경제연구
Journal Title(Ko) :Environmental and Resource Economics Review
Volume : 30
No :2
Pages :299-323
DOI :https://doi.org/10.15266/KEREA.2021.30.2.299

[1] Amri, F. “Carbon dioxide emissions, total factor productivity, ICT, trade, financial development, and energy consumption: testing environmental Kuznets curve hypothesis for Tunisia,” Environmental Science and Pollution Research, Vol. 25, 2018, pp. 33691~33701.10.1007/s11356-018-3331-1 30276690

[2] Bello, A, K., and Q. M. Abimola, “Does the level of Economic Growth influence Environmental Quality in Nigeria: A test of environmental Kuznets curve (EKC) Hypothesis,” Pakistan Journal of Social Science, Vol. 7, 2010, pp. 325~329.10.3923/pjssci.2010.325.329

[3] Brown, R. L., J. Durbin, and J. M. Evans, “Techniques for testing the constancy of regression relations over time”, Journal of Royal Statistical Society, Vol. 37, 1975, pp. 149~163.10.1111/j.2517-6161.1975.tb01532.x

[4] Dickey, D. A., W. A. Fuller, “Distribution of the estimators for autoregressive time series with a unit root,” Journal of the American Statistical Association, Vol. 74, No. 366, 1979, pp. 427~431.10.1080/01621459.1979.10482531

[5] Engle, R. F., and C. W. J. Granger, “Cointegration and error correction: representation, estimation, and testing,” Econometrica, Vol. 55, 1987, pp. 251~276.10.2307/1913236

[6] Faisal, F., Azizullah. T. Tursoy, and R. Pervaiz, “Does ICT lessen CO₂ emissions for fast-emerging economies? an application of the heterogeneous panel estimations,” Environmental Science and Pollution Research, Vol. 27. 2020, pp. 10778~10789.10.1007/s11356-019-07582-w 31942718

[7] Fernández, V. C., and J. T. Fernández, “The long run impact of foreign direct investment, exports, imports and GDP: evidence for Spain from an ARDL approach,” EHES Working Paper, Vol. 128, 2018, pp. 1~21.

[8] Günther, O., “Environmental information systems,” SIGMOD Rec. Vol. 3, No. 1, 1997, pp. 3~4.10.1145/248603.248604

[9] Harris, R., and R. Sollis, Applied Time Series Modeling and Forecasting, Wiley, West Sussex, 2003.

[10] Haseeb, A. E. Xia, S. Saud, A. Ahmad, and H. Khurshid, “Does information and communication technologies improve environmental quality in the era of globalization? an empirical analysis,” Environmental Science and Pollution Research, Vol. 26, 2019, pp. 8594~8608.10.1007/s11356-019-04296-x 30710332

[11] Higón, D., R. Gholami, and F. Shirazi, “ICT and environmental sustainability: a global perspective,” Telematics and Informatics, Vol. 34, 2017, pp. 85~9510.1016/j.tele.2017.01.001

[12] Ilic, A., P. Bowman, J. Ng, and T. Staake, “The value of RFID for RTI management,” Electronic Markets, Vol. 19, No. 2-3, 2009, pp. 125~135.10.1007/s12525-009-0011-5

[13] Johansen, S., and K. Juselius, “Maximum likelihood estimation and inference on cointegration with applications to the demand for money,” Oxford Bulletin of Economics and Statistics, Vol. 52, 1990, pp. 169~210.10.1111/j.1468-0084.1990.mp52002003.x

[14] Lee, J. W., and T. Brahmasrene, “ICT, CO₂ emissions and economic growth: evidence from a panel of ASEAN,” Global Economic Review, Vol. 43, 2014, pp. 93~109.10.1080/1226508X.2014.917803

[15] Lu, W. C., “The impacts of information and communication technology, energy consumption, financial development, and economic growth on carbon dioxide emissions in 12 Asian countries,” Mitigation and Adaptation Strategies for Global Change, Vol. 23, 2018, pp. 1351~1365.10.1007/s11027-018-9787-y

[16] Narayan, P. K. “The saving and investment nexus for China: evidence from cointegration tests,” Applied Economics, Vol. 37, 2005, pp. 1979~1990.10.1080/00036840500278103

[17] Ozcan, B., and N. Apergis, “The impact of internet use on air pollution: evidence from emerging countries,” Environmental Science and Pollution Research, Vol. 25, 2018, pp. 4174~4189.10.1007/s11356-017-0825-1 29209968

[18] Park, Y., F. Meng, and M.A. Baloch, “The effect of ICT, financial development, growth, and trade openness on CO₂ emissions: an empirical analysis,” Environmental Science and Pollution Research, Vol. 25, 2018, pp. 30708~30719.10.1007/s11356-018-3108-6 30178410

[19] Pesaran, M. H., and B. Pesaran, Working with Microfit 4.0: interactive econometric analysis, Oxford: Oxford University Press, 1997.

[20] Pesaran, M. H., and Y. Shin, An autoregressive distributed lag modelling approach to cointegration analysis, In: Strom S, Holly A, Diamond P, eds. Econometrics and Economic Theory in the 20th Century: The Ranger Frisch Centennial Symposium. Cam-bridge: Cambridge University Press, UK, 1999.

[21] Pesaran, M. H., Y. Shin, and R. J. Smith, “Bounds testing approaches to the analysis of level relationships,” Journal of Applied Econometrics, Vol. 16, 2001, pp. 289~326.10.1002/jae.616

[22] Phillips, P. C. B., and P. Perron, “Testing for a unit root in time series regression,” Biometrika, Vol. 75, No. 2, 1988, pp. 335~346.10.1093/biomet/75.2.335

[23] Sadorsky, P., “The impact of financial development on energy consumption in emerging economies,” Energy Policy, 38, 2010. pp. 2528~2535.10.1016/j.enpol.2009.12.048

[24] Shehzad, K., L. Xiaoxing, M. Sarfraz, and M. Zulfiqar, “Signifying the imperative nexus between climate change and information and communication technology development: a case from Pakistan,” Environmental Science and Pollution Research Environmental Science and Pollution Research, Vol. 27, 2020, 30502~30517. 10.1007/s11356-020-09128-x.

[25] Wang, H., and Y, Jin, “Industrial ownership and environmental performance: evidence from China,” Environmental and Resource Economics, Vol. 36, 2007, pp. 255~273.10.1007/s10640-006-9027-x

[26] World development indicators of the World Bank DataBank, Available: https://databank.worldbank.org/source/world-development-indicators (accessed on 1 June 2020).

[27] Yao, X-N., and J-Y. Liu, The potential of economic growth and technology advancement in the BRICs, Proceeding of the 2011 International Conference on Machine Learning and Cybernetics.10.1109/ICMLC.2011.6016923

[28] Zhang, C., and C. Liu, “The impact of ICT industry on CO₂ emissions: a regional analysis in China,” Renewable & Sustainable Energy Reviews, Vol. 44, 2015, pp. 12~19.10.1016/j.rser.2014.12.011

[29] Zhang, Y. J. “The impact of financial development on carbon emissions: an empirical analysis in China,” Energy Policy, Vol. 39, 2011, pp. 2197~2203.10.1016/j.enpol.2011.02.026

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