Internet Penetration and the Environmental Kuznets Curve: A Cross-National Analysis

Abstract

The internet has revolutionized the pattern of economic growth and its environmental effects. We investigate the ways in which internet penetration influences the relationship between income and the environment using data from 1996 to 2014 on CO2 emissions from 115 countries with multiple levels of per capita GDP and internet penetration. Empirical results document the existence of the Environmental Kuznets Curve (EKC) and reveal that internet penetration does generally reduce the actual income level beyond which pollution begins to decrease. Further tests, based on the division of income and period, indicate an increasing negative influence of internet penetration on emissions reduction, with income growth and the environmental effect of the internet evolving from direct and indirect to systemic. We discuss this study’s contributions to further research on income-environment paths and implications for the role of the internet in emissions reduction.

Does the digital finance revolution validate the Environmental Kuznets Curve? Empirical findings from China

“…The Index coefficient is significantly negative, indicating that development of digital finance can promote reduced pollution emissions, and the direct effect of digital finance on the environment is positive. First, the development of digital finance is closely related to the development and popularization of the Internet [ 25 – 27 ], and the Internet can improve environmental quality to a certain extent as illustrated in the literature review. In 2015, the number of Internet users in China was 688 million, and the Internet penetration rate reached 50%.…”

“…In another sample of 21 sub-Saharan African countries, the empirical results indicated that mobile phone and Internet penetration had direct positive effects on CO 2 emissions [ 53 ]. Zhang and Meng (2019) tested the EKC with Internet penetration in 115 countries, indicating that the EKC existed and Internet penetration pushed a decrease in CO 2 emissions [ 27 ]. Zhang et al (2019) conducted research on the Internet and residents’ environmental awareness in China, and reported that increased online content frequency reduced residents’ satisfaction with the government’s environmental protection [ 54 ].…”

ICT for sustainable development: Global comparative evidence of globalisation thresholds

“…ICT can therefore have negative or positive effects on environmental sustainability depending on specificities. This has prompted many scholars to argue for an inverted U-curve nexus between the two concepts (Higón et al, 2017;Zhang and Meng, 2019;Khan et al, 2020;Chien et al, 2021).…”

Determinants of the downward sloping segment of the EKC in high-income countries: The role of income inequality and institutional arrangement

“…In fact, economic growth alone cannot solve all environmental problems (Singh & Shishodia, 2007), and further analysis is needed to determine what factors ensure that economic growth is compatible with an improving environment. While the EKC hypothesis has been widely tested to explain the relationship between environment and income, the results have not been the same for all countries, indicating that this relationship is influenced by various other factors (Dinda, 2004;Kijima et al, 2010;Lv, 2017;Zhang & Meng, 2019). Indeed, the appearance of the downward sloping segment of the EKC differs with the political framework and relative income, even among similarly high-income countries (Magnani, 2000).…”