The role of technological innovations and ICT in reducing Greenhouse gas emission: Evidence from the Belt and Road initiative countries

Abstract

Climate change is a global problem and its rapid increase with negative and irretrievable consequences in all sectors of the economy is linked to greenhouse gas emissions. Such an increase in greenhouse gas and carbon emissions is associated with ecological, economic and social issues which can be solved with the rising innovations and information and communication technology. In this regard, this study examines the effect of innovations and information and communication technology on environmental degradation in the Belt and Road initiative countries from 1996 to 2018 using dynamic models. The results indicate that innovations proxy by patent applications reduce emissions while mobile cellular subscriptions, human capital and urban population are the drivers of emissions. ICT proxy by internet use reduces total greenhouse gas emissions while it is positively associated with carbon dioxide emission however, an increase in ICT increases greenhouse gas and reduces carbon dioxide emissions. The effect of economic growth on greenhouse gas and carbon dioxide emission varies across models. The findings of this study have considerable policy implications for the sample countries regarding innovation technology and information and communication technology indicators in reducing carbon dioxide and greenhouse gas emissions.