Green ICT Dynamics: Key Issues and Findings for Germany

The role of information and communication technology (ICT) is discussed both with respect to economic growth and green global modernization. ICT stands for the most innovative sector in the EU and the US; high productivity growth and digital product innovations are characteristics of this sector, at the same time, ICT products are considered to be an enabling technology in other sectors. While digital technological progress may be anticipated – including the expansion of the Internet – to contribute to raising efficiency and more green economic growth, there are considerable risks of rebound effects in the ICT sector. The findings for the impact of an expansion of Green ICT in Germany show small significant effect on output and relatively more important effects on the reduction of greenhouse gases. Hence the simulation results from the PANTA RHEI model suggest that Green ICT dynamics could be a useful element of sustainable development in Germany and the EU, respectively.