Moving Toward Environmental Sustainability: ICTs, Freight Transport, and CO₂ Emissions

The link between ICTs, freight transport, and CO₂ emissions has not received much explicit examination by researchers, despite freight transportation being an egregious contributor to environmental degradation. This paper investigates how ICTs can affect environmental quality when interacting with freight transport activities in 43 countries over the period 2002-2014, using carbon emissions as a proxy for environmental damages. ICTs are measured in terms of internet, telephone, and mobile phone technologies. Using GMM methodology, the results show that ICTs contribute to dampening environmental degradation when interacting with freight transport activities. Specifically, a 10% increase in the interaction between ICTs and freight transportation will decrease carbon emissions by between 1.27% and 3.02%. The results further suggest that fixed and smartphone technologies are the main contributors to reducing emissions when adopted in some specific transport sectors (i.e. road, rail, and inland), while the internet is the most efficient technology when interacting with air transport activity. In addition, the interaction between ICTs and multimodality accelerates environmental quality. The policy implications of these findings are discussed.