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Digital Growth in Algeria and Its Implications on the Economy and the Environment
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Digital Growth in Algeria and Its Implications on the Economy and the Environment
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Journal Article
Digital Growth in Algeria and Its Implications on the Economy and the Environment
2025
Overview
This article assesses the impact of digital growth in Algeria and its implications on the economy and the environment. For a more aggregated use of ICT, it addresses the hypothesis of the rebound or the third-order effect, implied by the electricity consumption channel. This contribution deploys a constructive, conceptual, and quantitative analysis. Referring to the empirical work of Hilty et al. (2006) and Tsaurai et al. (2019), we estimate an ARDL model to examine the short-and long-term elasticity coefficients of electricity consumption, digital, economic, and financial growth indicators. The analysis spans from 2000 to 2022. The results indicate the presence of a cointegration form with an adjustment coefficient of -2.78 and a causality relationship between CO2 emissions and the variables. The short-and long-term elasticity coefficients for per capita electricity consumption are negative. The coefficient is (-0.27) in the short term and smaller in magnitude in the long term (-0.147). The emissions rate per kWh has significantly decreased. The increase in electricity consumption is associated with a decrease in its carbon content. Moreover, digital indicators had a negligible effect with coefficients near zero. These results disprove the rebound effect and suggest that environmental sustainability improved in Algeria during the study period.
Publisher
جامعة قاصدي مرباح ورقلة
Subject
