Analyzing the effects of digitalization on CO2 emissions in a global context

• Main Author: Mercado, Jose Lorenzo P.
• Format: text
• Language: English
• Published: Animo Repository 2021
• Subjects: Electronic records > Environmental aspects; Carbon dioxide mitigation; Economics; Environmental Studies
• Online Access: https://animorepository.dlsu.edu.ph/etdb_econ/18; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1019&context=etdb_econ
• Institution: De La Salle University

Existing research in the digitalization’s effects on carbon dioxide emissions mostly consists of qualitative studies and does not work with an economic theoretical framework. This paper aimed to address that gap through investigating their relationship using an externality framework. This study employs panel data for dataset of 58 countries for the period 2007 to 2018. The study used a 2SLS panel data model, to measure this relationship. The results indicate that digitalization influences carbon dioxide emissions through GDP. Digitalized GDP changes to negatively affect the volume of carbon dioxide emissions a country produces. Digital exports, mobile subscribers, and fixed broadband subscribers contributed to digitalized GDP. Digital exports, however, were shown to be the most significant digitalization variable which affected GDP. To improve digitalization’s effects on carbon dioxide, it is important to channel more investments into digital exports.