Published on March 28, 2025 – Updated on March 28, 2025
Location
Pôle Tertiaire - Site La Rotonde - 26 avenue Léon Blum - 63000 Clermont-Ferrand
Room 212

Research Seminar. Digital Infrastructure, Green Transition? Evidence from Input-Output Networks

Stéphane Straub
Chief economist for infrastructure, The World Bank Group

Coauthor: Chris Dann, Stanford University.

Abstract

To what extent does digitalization of inputs decrease greenhouse gas emissions via efficiency gains? Taking an economy-wide perspective using inter-country input-output tables, as well as subnational input-output tables for the top three global emitters -- the United States, China, and India -- this paper estimates the impact of downstream sectors' adoption of digital inputs on greenhouse gas emissions. Using a shift-share instrumental variable strategy, we exploit productivity shocks among trading partners' digital sectors, as an identification strategy and reveal both substantial rebound effects and evidence that digitalization of inputs has unexpected adverse impacts on emission levels.