[Research Contribution] Information & Communications Technology's influence on CO2 emissions & renewable energy consumption - and what it means for economic growth

Keywords: Eco-friendly packaging; Purchase intention; Gen Z; Theory of Planned Behavior; Altruistic values; Egoistic values; Environmental awareness; Health consciousness; Social norms; Control perceived behavior.

We often think that technology is the driving force behind faster economic growth. But if rapid development comes with pollution and resource depletion, is it really growth? In the context of countries racing in technology while facing increasing environmental pressures, a question begins to emerge: can technology both drive growth and make the economy more sustainable?

From the perspective of the research paper "Information & Communications Technology's influence on CO2 emissions & renewable energy consumption - and what it means for economic growth" by a group of students from the University of Economics Ho Chi Minh City (UEH), has discovered that the role of technology is not only important for economic growth but also shapes a "green" development model thru its influence on CO2 emissions and renewable energy.

So, what exactly is ICT (Information and Communications Technology)?

In this study, ICT is understood as a collection of technologies that help create, store, and transmit information, from the Internet and mobile phones to telecommunications systems. Specifically, the level of ICT development is measured thru factors such as the percentage of Internet users, mobile subscriptions, broadband, and fixed-line telephones. These indicators not only reflect the level of "digitalization" of a country but also demonstrate the ability to apply technology to the economy and daily life.

*Does technology really help the economy develop better?

The answer is yes, but not in the direct way that many people think. Research shows that technology does not create growth by itself, but rather impacts it thru an intermediary factor, which is the environment. When ICT develops, it helps reduce CO2 emissions and promotes the use of renewable energy. And it is these two factors that make economic growth stronger and more sustainable. Simply put, technology is only truly "valuable" when it helps the economy develop in a way that is less harmful to the environment.

*How has technology changed the environment?

Instead of just making everything faster, ICT is making systems operate more efficiently. When technology is widely adopted, businesses can optimize production, reduce energy waste, limit unnecessary travel, and support the development of clean energy solutions. As a result, emissions decrease while renewable energy is used more. This shows that technology is not only a driver of growth but also part of the solution to environmental issues.

*But do countries with technology achieve the same results?

Not necessarily. Research indicates that the effectiveness of ICT heavily depends on the economic foundation of each country. Countries with developed financial systems or those attracting significant foreign investment often leverage technology better, thereby creating a more pronounced impact on the environment. Meanwhile, in countries with more limited conditions, technology may not yet reach its full potential. This shows that ICT is not an "automatic solution," but needs to be accompanied by a sufficiently strong supporting ecosystem to create real change.

Research Model

Green technology does not happen on its own; it needs to be guided

Research shows that ICT can become a driver for sustainable growth, but this does not happen naturally. Technology only truly creates value when it is placed within a suitable ecosystem, where the financial infrastructure is strong enough, capital flows are allocated efficiently, and development policies are always aligned with environmental goals. At that time, ICT not only helps the economy grow faster but also reduces emissions and promotes the use of renewable energy, thereby making growth more sustainable. On the contrary, if we only focus on technology while neglecting environmental factors and the economic foundation, these benefits will be difficult to fully realize. This also shows that developing technology is not the destination, but rather the way we choose to use new technology is the key factor determining the direction of the economy in the future.

The research paper has indirectly contributed to SDG 7, 9, and 13. View the full research paper “Information & Communications Technology's influence on CO2 emissions & renewable energy consumption - and what it means for economic growth” HERE

The authors: Nguyen Dinh Song Khang, Nguyen Ngoc Minh Anh, Ho Le Thanh Thao, Thai Tran Thanh Thao, Nguyen Vu Anh Thu - University of Economics Ho Chi Minh City.

This article is part of the Green Research Community series with the message “Research Contribution for UEH Living Lab Green Campus” UEH sincerely invites the community to follow the next Green Research Community newsletter.

More Information:

SDG 7 – Affordable and Clean Energy emphasizes ensuring that everyone has access to reliable, modern, affordable, and environmentally friendly energy. Beyond simply expanding electricity systems, this goal promotes the use of renewable energy, improves energy efficiency, and reduces the negative environmental impacts of traditional energy exploitation.

SDG 9 – Industry, Innovation, and Infrastructure aims to build resilient infrastructure, promote sustainable industrialization, and encourage innovation. This goal goes beyond advancing technology and production; it also includes narrowing infrastructure access gaps between regions, supporting small and medium-sized enterprises, and applying technology to enhance global competitiveness.

SDG 13 – Climate Action calls for urgent measures to combat climate change and its adverse impacts by reducing greenhouse gas emissions, enhancing adaptive capacity, and raising public awareness. This goal goes beyond national-level policies and requires changes in individual and community behaviors in daily life, especially in areas directly linked to waste generation and management.

News, photos: UEH Green Campus Project, UEH Communications and Partnership Development Department

Voiceover: Thanh Kieu