Information and Communications Technology, Economic Growth, and Carbon Emission Levels

The paper deals with the impact of information and communications technology on carbon emissions and economic growth in South Korea. The quarterly time series data from the first quarter of 1970 to the third quarter of 2010 (163 observations) are collected and retrieved from the Bank of Korea database. The paper examines long-run equilibrium relationships using cointegration techniques and Granger causality with vector error correction models. In directional causality tests, information and communications technology shows highly significant positive effects on economic growth and marginal effect on carbon emissions. Carbon emissions and economic growth exhibit an inverse relationship with each other; that is, carbon emissions have an inverse relation to economic growth and economic growth does not significantly affect carbon emissions in South Korea. We also note possible implications regarding growth policies and the information communications technology and “green” technology sectors for economies in the range represented by Korea’s 1970 - 2010 data.