Impact of technological progress on carbon emissions in different country income groups

Chris Milindi and Roula Inglesi-Lotz
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Chris Milindi: Department of Economics, University of Pretoria, Pretoria, South Africa

No 202123, Working Papers from University of Pretoria, Department of Economics

Abstract: This study examines the complex relationship between carbon emissions and technological progress in a sample of 60 countries, divided into four categories based on their per capita income between the periods of 1989-2018. For robustness purposes and due to the broad definition of technology, we use six different proxies to represent technology; namely: Information and telecommunication technology (ICT); patents; public R&D expenditure; total factor of productivity (TFP); and a number of science and technology publications. After applying the fixed-effect method with Driscoll and Kraay standard errors, for the full sample, the results show that the ICT variables are a good instrument for carbon abatement, while R&D expenditure and patents do not have a clear impact on carbon emissions, TFP increases carbon emissions, and science and technology publications are negatively related to carbon emissions. The impact of the indicators on the various income levels groups of countries vary which has significant policy implications.

Keywords: Technological progress; Income groups; rebound effect; fixed effect methodology with Driscoll and Kraay standards errors (search for similar items in EconPapers)
JEL-codes: C23 O30 O32 Q56 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2021-03
New Economics Papers: this item is included in nep-eff, nep-ene, nep-env, nep-ict and nep-reg
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Related works:
Journal Article: Impact of technological progress on carbon emissions in different country income groups (2023)
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