The Impacts of ICT and innovation on Carbon Dioxide Emissions in G20 Countries

Abstract

Abstract The G20 countries collectively account for a substantial portion of global carbon dioxide (CO2) emissions, as they represent the world’s major economies and industrial powers. The continual growth in CO2 emissions exacerbates the greenhouse effect, which negatively influences the environment and ecosystems by raising temperatures, altering weather patterns, and increasing sea levels. To effectively address global climate action, it is imperative to tackle and reduce CO2 emissions in G20 nations. The objective of this study is to investigate the impacts of ICT and innovation on CO2 emissions in G20 countries. Using panel quantile regression, we analyze data spanning from the year 2000 to 2019 to derive meaningful results. The findings demonstrate a strong positive association between ICT and CO2 in nations that fall between the 10th and 40th quantiles. The countries with carbon dioxide emissions falling between the 30th and 90th quantiles also showed a strong positive correlation between patent applications and CO2. The conclusion of this study shows that innovation and ICT do not always reduce CO2, especially at levels of CO2 emission below the 40th quantile. As a result, depending on the country’s CO2 level, different ICT and innovation-related initiatives may have different effects on CO2. The novelty of this study reveals that the relationship between ICT, innovation, and CO2 emissions is underscored by varying levels of CO2 emissions.