Research Database

This study examines the effect of ICT and human capital on carbon emissions in the ASEAN economies from 1996 to 2019 using panel estimators. The region has implemented several joint-policies on climate change and ICT sector development. On the one hand, ICT can help reduce carbon emissions through innovative clean technology; however, there are concerns about the production and disposal of ICT. Meanwhile, human capital formation can increase carbon emissions as it indirectly affects growth; yet human capital can enhance the absorptive capacity of an economy and enhance the effectiveness of ICT technologies to reduce potentially emissions. Results show that ICT reduce carbon emissions while human capital formation increases it. However, the results vary when examining the impact of ICT and human capital on carbon emissions from manufacturing, residential, transport and other industries: ICT consistently reduces carbon emissions; meanwhile, human capital decreases carbon emissions for manufacturing and other industries. Subsequently, ASEAN policymakers should develop the ICT infrastructure in order to support the reduction of carbon emissions.