Decomposing the Persistent and Transitory Effect of Information and Communication Technology on Environmental Impacts Assessment in Africa: Evidence from Mundlak Specification

Abstract

This study examines the persistent and transitory effects of information and communication technology (ICT) on the environmental impact assessment in Africa. The applied advanced econometrics is based on both the Mundlak and Hausman–Taylor methodology for correcting endogeneity and the feasible generalized least squares (FGLS) method to identify any potential cross-panel correlation. The empirical evidence suggests that an increase in ICT (Internet penetration) has a positive transitory effect on the environment. On the contrary, an increase in ICT has a negative persistent effect on the environment. This implies that a temporary change in ICT usage increases carbon emissions, whereas ICT use can reduce carbon emissions in the long run. In addition, this study identified mediums through which ICT can affect the environment, such as energy consumption. Therefore, this study recommends continuous investment in ICT infrastructure and education on the importance of practicing environmentally sustainable practices. Similarly, energy conservation is critical because use of the Internet appears to indirectly increase energy usage by increasing the overall productivity of the economy, which may subsequently degrade the environment.