Investigating the Link Among ICT, Electricity Consumption, Air Pollution, and Economic Growth in EU Countries

Energy Sources, Part B: Economics, Planning, and Policy, 2021, DOI: 10.1080/15567249.2020.1868622, ISSN: 1556-7249

Posted: 10 Mar 2021

See all articles by Cosimo Magazzino

Cosimo Magazzino

University of Rome III; Royal Economic Society; Italian Economic Association

Donatella Porrini

University of Salento - Department of Economics and Mathematics and Statistics

Giulio Fusco

affiliation not provided to SSRN

Nicolas Schneider

Centre d'Économie de la Sorbonne (CES) - Center of Economics of the Sorbonne (CES); University of Paris 1 Pantheon-Sorbonne, Centre d'Economie de la Sorbonne (CES), Students

Date Written: 2021

Abstract

This study investigates the relationship between Information and Communication Technology (ICT) penetration, electricity consumption, economic growth, and environmental pollution within a multivariate framework. A panel of 16 EU countries was analyzed over the 1990–2017 period. The results of the Dumitrescu-Hurlin panel causality tests reveal the existence of a one-way causality running from ICT usage and electricity consumption and which, in turn, causes a rise in CO2 emissions and improves GDP. Panel Mean-Group regression results highlight that economic growth is also an important driver of electricity demand as a 1% economic growth rate is associated with a 0.13% increase in per capita electricity consumption. These results demonstrate for the first time in the literature a single assessment on the linkages among ICT, electricity use and environmental pollution with a novel focus on the EU. Based on these results, adequate measures should encompass the adverse environmental effects of ICT, while energy saving policies must be carefully implemented in order not to hinder economic growth.

Keywords: Electricity consumption; CO2 emissions; internet usage; economic growth; EU; panel data

Suggested Citation

Magazzino, Cosimo and Porrini, Donatella and Fusco, Giulio and Schneider, Nicolas, Investigating the Link Among ICT, Electricity Consumption, Air Pollution, and Economic Growth in EU Countries (2021). Energy Sources, Part B: Economics, Planning, and Policy, 2021, DOI: 10.1080/15567249.2020.1868622, ISSN: 1556-7249, Available at SSRN: https://ssrn.com/abstract=3791998

Cosimo Magazzino (Contact Author)

University of Rome III ( email )

Via Ostiense 139
Rome, RM 00154
Italy

HOME PAGE: http://scienzepolitiche.uniroma3.it/cmagazzino/

Royal Economic Society ( email )

London
United Kingdom

Italian Economic Association ( email )

Piazzale Martelli, 8
Ancona, AN 60121
Italy

HOME PAGE: http://www.siecon.org/online/en/

Donatella Porrini

University of Salento - Department of Economics and Mathematics and Statistics ( email )

Piazza Tancredi, n7
Lecce, 73100
Italy

Giulio Fusco

affiliation not provided to SSRN

Nicolas Schneider

Centre d'Économie de la Sorbonne (CES) - Center of Economics of the Sorbonne (CES) ( email )

106-112 bd de l'Hôpital
Paris, 75642
France

University of Paris 1 Pantheon-Sorbonne, Centre d'Economie de la Sorbonne (CES), Students ( email )

106-112 Boulevard de l'hopital
Paris Cedex 13
France

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