Linking Information Communication Technology, trade globalization index, and CO 2 emissions: evidence from advanced pane
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RESEARCH ARTICLE
Linking Information Communication Technology, trade globalization index, and CO2 emissions: evidence from advanced panel techniques Zahoor Ahmed 1
&
Hoang Phong Le 2
Received: 28 July 2020 / Accepted: 9 October 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Previous studies consider ICT a two-edged sword that can harm or benefit the environment. In recent years, ICT penetration has considerably increased in the ASEAN-6 countries and the leaders of ASEAN are willing to bring a digital revolution by increasing ICT infrastructure and reducing trade barriers in the region under the Master Plan of ASEAN Connectivity-2025. Hence, this paper explores the effect of ICT and the recently developed trade globalization index on CO2 emissions in ASEAN-6 countries. The study relies on advanced panel econometric approaches, including Westerlund (2007, 2008) and Pedroni cointegration tests, CUP-FM long-run method, and panel DH causality approach. The results suggest cointegration among variables. The results of CUP-FM indicate that ICT contributes to improving environmental quality by mitigating CO2 emissions. Similarly, trade globalization is also sustainable in the region as it reduces emissions. The results are also confirmed by using the CUP-BC estimator. The findings from the DH causality test unfold causality from ICT and trade globalization index to CO2 emissions. Besides, the long-run estimates reveal the detrimental effect of energy consumption on emissions and the U-shaped association between GDP and emissions. Moreover, unidirectional causality from ICT to trade globalization index and energy consumption indicates that ICT influences trade globalization and energy consumption. Finally, environmental policies in the context of ASEAN are extensively discussed. Keywords ICT . Trade globalization index . Economic growth . CUP-FM . Energy consumption
Introduction The rising level of CO2 emissions in the atmosphere and consequential climate change are among the most important problems of the current age. The world has already recognized the significance of climate change by adopting the Kyoto Protocol in 1997 and later on ratifying the Paris Agreement with an intension to keep global temperature growth below preResponsible Editor: Philippe Garrigues * Zahoor Ahmed [email protected] Hoang Phong Le [email protected] 1
School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China
2
School of Public Finance, University of Economics Ho Chi Minh City, 59C Nguyen Dinh Chieu, District 3, Ho Chi Minh City, Vietnam
industrial levels (Malik et al. 2020). Countries have agreed to intensify their efforts and investments required for a sustainable environment. In the meanwhile, CO2 emissions increased once again in 2017 after showing some stability for almost 3 preceding years. This time growth of more than 2% came from non-OECD countries, in particular from Asian countries (IEA 2019). This study is an attempt to understand the association betwee
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