How ICT development affects manufacturing carbon emissions: theoretical and empirical evidence

Abstract

There is a broad consensus that information and communication technology (ICT) development contributes to economic growth, but its environmental benefits have not been thoroughly studied. This paper explores the impact and mechanisms of ICT development on manufacturing carbon emissions. We first conducted empirical tests based on panel data from 18 manufacturing sectors in 42 countries from 2000 to 2014. The results show that domestic ICT development reduces manufacturing carbon emissions, but the effect is only significant in sectors with high ICT embedded. Second, technological progress, industrial internal structure upgrading, energy consumption intensification, and low carbonization are the main channels for ICT development and embedding to reduce manufacturing carbon emissions. Third, the carbon emissions from manufacturing, which are deeply embedded by ICT, will decrease as the position of ICT forward GVCs improves, and increase as the position of backward GVCs increases. In addition, ICT development has a more significant impact on reducing carbon emissions in high-tech manufacturing. This paper has enriched research on the environmental benefits of ICT development and has been informative and insightful for countries in formulating industrial development policies and implementing the Paris Agreement.

Keywords: Carbon emissions; Global value chains; ICT development; Manufacturing.