Exploring Interconnections Among Environmental Degradation, Energy Consumption, Information and Communication Technology, and Total Factor Productivity in Iran

Information and Communication Technology (ICT) is recognized as a critical driver of economic development in the modern era, significantly enhancing the productivity of production factors. However, the widespread adoption of ICT, particularly in countries reliant on fossil fuels, may contribute to i...

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Bibliographic Details
Main Author: M. Abbasian
Format: Article
Language:English
Published: Babol Noshirvani University of Technology 2025-07-01
Series:Iranica Journal of Energy and Environment
Subjects:
Online Access:https://www.ijee.net/article_210381_e877188d60d6b8fdd4c95b8be27c9522.pdf
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Summary:Information and Communication Technology (ICT) is recognized as a critical driver of economic development in the modern era, significantly enhancing the productivity of production factors. However, the widespread adoption of ICT, particularly in countries reliant on fossil fuels, may contribute to increased greenhouse gas emissions, including carbon dioxide (CO2). So, this study investigates the interconnections among ICT, CO2, renewable energy, and Total Factor Productivity (TFP) in Iran. This descriptive-analytical and applied study used time series data from the World Bank and Iran Statistics Center from 2000 to 2023. This study, the Autoregressive Distributed Lag (ARDL) model to evaluate the long-term and short-term dynamic, unit root tests and diagnostic tests CUSUM and CUSUMQ and Canonical Co-Integrating Regression (CCR) Dynamic least squares (DOLS), and fully modified least squares (FMOLS) have been used to validate the results of ADRL estimates. The results of the ARDL estimation method showed that in the long run, TFP and economic growth on carbon dioxide had a coefficient of 0.07 and 0.14, respectively. Renewable energy consumption with a coefficient of -0.0808 had a significant negative role in reducing carbon dioxide. The coefficient of -0.286 obtained for the ICT variable at 95% indicates a reduction in carbon dioxide in parallel with the development of ICT. CUSUM and CUSUMQ confirmed the stability of the parameters, and CCR, DOLS, and FMOLS regressions confirmed the results of the ADRL model. The study recommends adopting green technologies and effective energy policies to balance productivity gains with environmental protection.
ISSN:2079-2115
2079-2123