nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2022‒06‒20
nine papers chosen by
Marek Giebel
Universität Dortmund

  1. ICT, carbon emissions, climate change, and energy demand nexus: the potential benefit of digitalization in Taiwan By Adha, Rishan; Hong, Cheng-Yih; Agrawal, Somya; Li, Li-Hua
  2. The role of ICT adoption in promoting livelihoods in Eastern Africa: Evidence from Uganda By Subramanian, Krishnan; Bozzola, Martina; Nugent, Anne
  3. Information Technology and Sustainability in Developing Countries: An Introduction By Simplice A. Asongu; Nicholas M. Odhiambo
  4. The impact of healthcare IT on clinical quality, productivity and workers By Ari Bronsoler; Joseph Doyle; John Van Reenen
  5. Mobile Technology Supply Factors and Mobile Money Innovation: Thresholds for Complementary Policies By Simplice A. Asongu; Nicholas M. Odhiambo
  6. Anti-competitive Behavior in Providing Internet Service in Multi-Tenant Environments in the Philippines By Estavillo, Javea Maria
  7. Internet from space: How new satellite connections could affect global internet governance By Voelsen, Daniel
  8. AI Watch: Estimating AI investments in the European Union By Tatjana Evas; Maikki Sipinen; Martin Ulbrich; Alessandro Dalla Benetta; Maciej Sobolewski; Daniel Nepelski
  9. How unified is the Australian agricultural sector when talking to policy makers about digitalization? By Terhorst, Andrew; Garrard, Robert

  1. By: Adha, Rishan; Hong, Cheng-Yih; Agrawal, Somya; Li, Li-Hua
    Abstract: The global rise in energy consumption makes managing energy demands a priority. Here, the potential of Information and Communication Technology (ICT) in controlling energy consumption is still debated. Within this context, the main objective of the current study is to measure the impact of ICT, its potential benefit, and environmental factors on household electricity demand in Taiwan. A panel of data from 20 cities in Taiwan was collected during the period 2004-2018. We adopted PMG estimation and applied the DH-causality test for analysis. The estimation results show that ICT, carbon emissions, and climate change will drive household electricity demand in Taiwan in the long term. However, ICT has a higher potential to reduce electricity demand in the short-term period. In addition, the results of the causality test reveal a two-way interrelationship between ICT and electricity demand. Our study also found that climate change indirectly affects the use of electricity through household appliances. We also presented several policy implications at the end of this paper.
    Keywords: energy demand, ICT, carbon emissions, climate change, dynamic panel data model
    JEL: C3 C33 Q4 Q43
    Date: 2021–10–26
  2. By: Subramanian, Krishnan; Bozzola, Martina; Nugent, Anne
    Abstract: Information and Communication Technology (ICT) could play a pivotal role in the dissemination of agricultural technologies in Eastern Africa. In this study, we analyse the role of agricultural ICT and services in driving adoption of better agricultural technologies and practices by smallholder farmers in the Teso region of Ugandan. In turn, we analyse how adoption of ICT could impact on livelihoods, food security, and market opportunities. We implemented a Randomised Control Trial (RCT) in which mobile phones were randomly pro-vided for basic ICT training and access to information about good agricultural practices, nutrition se-curity and market access via SMS services to a sample of farmers. Woman accounted for 60% of the sample. Preliminary results suggests that the provisions of mobile phone, if coupled with training on how to access relevant information have a positive impact on the livelihood status of the farmers. Women farmers seem to have a higher positive impact of the combined program of providing mobile phones plus training opportunities.
    Keywords: Farm Management, Research and Development/Tech Change/Emerging Technologies
    Date: 2022–04
  3. By: Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: The purpose of this special issue is to contribute to the growing body of literature on the externalities of information technology within the specific remit of the relationship between information technology and sustainability outcomes in developing countries, not least because of the sparse scholarship on the subject focusing on developing countries. Each of the seven selected contributions to knowledge solidly stands on its own merits, as summarized in three main strands, notably: (i) information technology usage; (ii) the nexus between ICT and growth outcomes at the urban and national levels and (iii) leveraging on ICT for poverty reduction.
    Keywords: Information technology; sustainability; developing countries
    JEL: D10 D14 D31 D60 O30
    Date: 2022–01
  4. By: Ari Bronsoler; Joseph Doyle; John Van Reenen
    Abstract: Adoption of health information and communication technologies ('HICT') has surged over the past two decades. We survey the medical and economic literature on HICT adoption and its impact on clinical outcomes, productivity and labor. We find that HICT improves clinical outcomes and lowers healthcare costs, but (i) the effects are modest so far, (ii) it takes time for these effects to materialize, and (iii) there is much variation in the impact. More evidence on the causal effects of HICT on productivity is needed to guide further adoption. There is little econometric work directly investigating the impact of HICT on labor, but what there is suggests no substantial negative effects on employment and earnings. Overall, while healthcare is 'exceptional' in many ways, we are struck by the similarities to the wider findings on ICT and productivity stressing the importance of complementary factors (e.g. management and skills) in determining HICT impacts.
    Keywords: healthcare, technology, productivity, jobs
    Date: 2021–09–14
  5. By: Simplice A. Asongu; Nicholas M. Odhiambo
    Abstract: This study complements the extant literature by assessing how enhancing supply factors of mobile technologies affect mobile money innovations for financial inclusion in developing countries. The mobile money innovation outcome variables are: mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money. The mobile technology supply factors are: unique mobile subscription rate, mobile connectivity performance, mobile connectivity coverage and telecommunications (telecom) sector regulation. The empirical evidence is based on quadratic Tobit regressions and the following findings are established. There are Kuznets or inverted shaped nexuses between three of the four supply factors and mobile money innovations from which thresholds for complementary policies are provided as follows: (i) Unique adults’ mobile subscription rates of 128.500%, 121.500% and 77.750% for mobile money accounts, the mobile used to send money and the mobile used to receive money, respectively; (ii) the average share of the population covered by 2G, 3G and 4G mobile data networks of 61.250% and 51.833% for the mobile used to send money and the mobile used to receive money, respectively; and (iii) a telecom sector regulation index of 0.409, 0.283 and 0.283 for mobile money accounts, the mobile phone used to send money and the mobile phone used to receive money, respectively. Some complementary policies are discussed, because at the attendant thresholds, the engaged supply factors of mobile money technologies become necessary, but not sufficient conditions of mobile money innovations for financial inclusion.
  6. By: Estavillo, Javea Maria
    Abstract: Access to the internet has become a basic necessity. The Philippines already labors under low rates of access and slow connectivity, while two dominant internet service providers control nearly 80% of the market, rendering the market potentially vulnerable to anti-competitive conduct. An additional challenge is faced by consumers living in multi-tenant environments (MTEs), which accounts for more than 57% of households in Metro Manila. where developers can create a monopoly within the MTE through exclusive arrangements and other legal means. Recent decisions by the Philippine Competition Commission have struck down these arrangements as being uncompetitive and an abuse of market power. Low-income neighborhoods are most impacted by this lack of choice, where homeowners and tenants who are forced to engage with the monopolistic provider are unable to access the cheaper and more efficient fixed broadband internet services. Regulators should look into market concentration of internet service providers throughout various areas in the Philippines, and actively intervene when concentration leaves consumers little choice.
    Keywords: competition, anti-competitive behavior, competition policy, internet services, exclusive arrangements, Philippines
    JEL: K20 K21
    Date: 2022–05–16
  7. By: Voelsen, Daniel
    Abstract: A number of companies from the US and China plan to build networks of several thousand satellites each to enable access to the Internet from any point on Earth. These satellites will be stationed in low Earth orbit. If these plans are put into practice, the global Internet infrastructure will acquire a whole new dimension. This would have far-reaching consequences for Internet access, the security and resilience of Internet infrastructure, and power relations in global Internet governance. The home countries of the leading companies - above all the US, followed by China - would have extensive potential for political influence. They would be able to control, at the level of the Internet's global infrastructure, the worldwide flows of information. This research paper draws two scenarios to illustrate the range of possible developments and the corresponding potential responses: one describes the development of global oligopolies, the other a form of politically regulated global competition. German and European political decision-makers should use regulations and public funding to work towards a future Internet infrastructure that is secure and reliable. The basis for this is the redundancy and diversity of the underlying technology. To this end, the new satellite constellations can be an important part of an appropriate mix of technologies. It would be both politically and economically desirable for Europe to build its own constellation.
    Keywords: Infrastrukturelle Erschließung,Ziele und Programme internationalen Akteurs,Zugang zu Dienstleistungen,Status und Rolle im internationalen System,Privatwirtschaft,Staat,Strategische Überlegenheit,Multilateralismus,Wirkung/Auswirkung,Internationaler Informationsaustausch,Kommunikation in den internationalen Beziehungen,Entwicklungsperspektive und -tendenz
    Date: 2021
  8. By: Tatjana Evas (European Commission – DG CNECT); Maikki Sipinen (European Commission – DG CNECT); Martin Ulbrich (European Commission – DG CNECT); Alessandro Dalla Benetta (European Commission - JRC); Maciej Sobolewski (European Commission - JRC); Daniel Nepelski (European Commission - JRC)
    Abstract: This report provides estimates of AI investments in the EU between 2018 and 2020 and, for selected investments categories, in the UK and the US. It considers AI as a general-purpose technology and, besides direct investments in the development and adoption of AI technologies, also includes investments in complementary assets and capabilities such as skills, data, product design and organisational capital among AI investments. According to current estimates, in 2020 the EU invested EUR 12.7-16 billion in AI. In 2020, due to the COVID19 outbreak, the EU AI investments grew by 20-28%, compared to a growth of 43-51% in 2019.
    Keywords: General Purpose Technology, Artificial Intelligence, digital technologies, investments, intangibles, Europe
    Date: 2022–05
  9. By: Terhorst, Andrew; Garrard, Robert
    Abstract: Technological advances are transforming agriculture in many parts of the world. Despite the importance of agriculture to its economy, Australia lags behind other advanced economies in the adoption of digital agricultural technology. The country risks losing its comparative advantage due to a weak policy around digital agriculture. This study combines network analysis and natural language processing to assess 654 public submissions to six government inquiries addressing agricultural innovation, the digital economy, and rural broadband communication networks, held between 2016 and 2018. The analysis shows there is no consistent narrative driving policy development around digital agriculture. A fragmented policy landscape is a concern because it means that current and emerging policies may not address key issues, resulting in sub-optimal outcomes for Australian agriculture.
    Date: 2022–05–06

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