The role of ICT and energy consumption on carbon emissions: an Australian evidence using cointegration test and ARDL long-run and short-run methodology

Article


Khanal, Avishek. 2021. "The role of ICT and energy consumption on carbon emissions: an Australian evidence using cointegration test and ARDL long-run and short-run methodology." International Journal of Energy Economics and Policy. 11 (5), pp. 441-449. https://doi.org/10.32479/ijeep.11419
Article Title

The role of ICT and energy consumption on carbon
emissions: an Australian evidence using cointegration test and ARDL long-run and short-run methodology

ERA Journal ID200738
Article CategoryArticle
Authors
AuthorKhanal, Avishek
Journal TitleInternational Journal of Energy Economics and Policy
Journal Citation11 (5), pp. 441-449
Number of Pages9
Year2021
Place of PublicationTurkey
ISSN2146-4553
Digital Object Identifier (DOI)https://doi.org/10.32479/ijeep.11419
Web Address (URL)https://econjournals.com/index.php/ijeep/article/view/11419
Abstract

Information and communication technology (ICT) and energy consumption have substantially increased use over the last decade. It has become one of the essential aspects for improving the standard of life for many people. This study investigates the impact of internet use and energy consumption on the carbon emissions (CO2 emissions) using annual data from 1990 to 2019. For this investigation, ADF and PP unit root tests were applied with the Zivot-Andrews structural break for the unit root test. The paper implements the ARDL cointegration test, JJ cointegration test, and Bayer-Hanck test to check the long-run relationship between carbon dioxide emissions (CO2), internet use, and energy consumption with GDP and total population. The cointegration test results show that there exists a long-run relationship between the variables. The long-run findings reveal a negative impact of ICT on the environment, whereas energy consumption has a positive and significant impact on the environment. According to the short-run dynamics results, both internet usage and energy consumption have a positive and statistically significant impact. Thus, the government should increase subsidies and boost the adoption of high-efficiency appliances to lower energy usage.

Keywordsinformation and communication technology, energy consumption, CO2, cointegration tests, autoregressive distributed lag, Australia
ANZSRC Field of Research 2020410103. Human impacts of climate change and human adaptation
410199. Climate change impacts and adaptation not elsewhere classified
380105. Environment and resource economics
Byline AffiliationsSchool of Business
Institution of OriginUniversity of Southern Queensland
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