Dissertation submitted in partial fulfillment of the Requirement for the MSc in Finance FINANCE DISSERTATION ON THE IMPACT OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ON ENVIRONMENTAL SUSTAINABILITY AND THE POTENTIAL OF APPLYING ICT TO PROMOTE GREEN AND SUSTAINABLE DEVELOPMENT IN VIETNAM PHAM THI THU HA ID No: 23081352 Intake: 7 Supervisor: Dr. Tran Trung Kien September 2024 DISSERTATION CONFIRMATION PAGE Student’s name: Phạm Thị Thu Hà Student number: 23081352 Supervisor’s name: Dr. Trần Trung Kiên I, Trần Trung Kiên, hereby confirm that I have supervised the research and preparation of the student’s dissertation. I have reviewed the content, structure, and methodology used in the Dissertation and found it to be of satisfactory quality.
I am confident that the Dissertation meets the requirements set forth by the University of the West of England and is ready for examination. Signature of Student and date Signature of Supervisor and date Date: 08/09/2024 Date: 08/09/2024 i ACKNOWLEDGEMENT I am deeply honored to be a student of the Banking Academy (BAV) and the University of the West of England (UWE), and it has been a great privilege to learn from such dedicated professors. Their teaching has gone beyond imparting knowledge; they have also instilled in us valuable lessons about life, attitudes, and a multidimensional understanding of various issues. They have revealed to us the often overlooked complexities and attractions of the economy, particularly in the field of Finance.
Throughout my Master’s program, I have been fortunate to receive tremendous support from professors, family, and friends. I would like to extend my deepest gratitude to all the professors for their dedication and willingness to share their expertise with us. I am also grateful to both BAV and UWE for their collaboration in organizing the Master of Science in Finance program, which has been highly beneficial to my current professional endeavors. I want to particularly thank all the professors and teachers who have supported and guided me during my studies, contributing significantly to the completion of this thesis.
Moreover, I owe my deepest gratitude to my supervisor, Dr. Tran Trung Kien, for his enthusiastic guidance and valuable feedback throughout the thesis process. His insightful advice, from the initial planning stages to the completion of each chapter, has been crucial in shaping this work. This thesis would not have been possible without his support and scientific input.
Pham Thi Thu Ha ii EXECUTIVE SUMMARY This dissertation explores the impact of information and communication technology (ICT) on environmental sustainability, focusing on its potential to promote green and sustainable development in Vietnam. It investigates how ICT can both contribute to environmental degradation and serve as a tool for sustainable development. Over recent decades, environmental issues have grown in scale and complexity, becoming a global concern. Human activities—especially industrialization, urbanization, and resource overuse—have led to significant ecological problems, such as pollution, resource depletion, and climate change.
These issues are driven by socioeconomic forces and are exacerbated by global economic systems that often benefit developed nations at the expense of less developed ones. Efforts to mitigate these challenges include international cooperation, policy changes, and sustainable practices. Key international initiatives like Earth Day, the 1972 Stockholm Conference, and the 1992 Rio Earth Summit have brought environmental issues to the forefront of global agendas. Environmental problems often arise when human activities overuse the environment's capacity to function as a supply depot for resources, a waste repository, or a living space.
For instance, deforestation for agriculture reduces biodiversity, while greenhouse gas emissions contribute to global warming, disrupting ecosystems worldwide. The need for sustainable development has prompted frameworks like the United Nations Commission on Sustainable Development (UNCSD) and the Wuppertal Institute's sustainability frameworks, which monitor and guide efforts toward ecological balance. ICT plays a significant role in economic and social development, particularly in developing countries. It enhances productivity by improving information processing, communication, and storage capabilities.
There are three primary perspectives on ICT's role in development: modernization, dependency, and human-centered development. - Modernization Perspective: ICT is viewed as a catalyst for growth, enabling developing nations to leapfrog stages of development by adopting advanced technologies. - Dependency Perspective: ICT may perpetuate global inequalities by reinforcing the dominance of developed nations. - Human-Centered Development Perspective: ICT supports social development by promoting education, health, and living standards.
ICT contributes to general development by reducing information poverty, enhancing iii governance, and improving infrastructure, education, and market functioning. While ICT has driven significant economic and social progress, its environmental impact is a growing concern. ICT contributes to pollution throughout its lifecycle, from production to disposal, and its rapid adoption has increased global energy consumption, often leading to higher carbon emissions. Conversely, ICT also offers tools for environmental management, such as smart grids, efficient transport systems, and optimized industrial processes, which can reduce energy consumption and emissions.
The relationship between ICT and environmental sustainability is complex and context dependent. ICT can have both positive and negative effects on the environment, and its net impact depends on a country's level of development, economic structure, and policies. This dual nature has led to theories suggesting an inverted U-curve relationship between ICT usage and environmental impact, indicating that the effects of ICT on sustainability evolve over time as technology and usage patterns mature. This dissertation will examine the dual role of ICT in Vietnam, considering its potential to both challenge and enhance environmental sustainability.
By understanding ICT's complex relationship with the environment, Vietnam can develop informed policies to harness ICT for green and sustainable development. iv TABLE OF CONTENT ACKNOWLEDGEMENT. ii EXECUTIVE SUMMARY .iii TABLE OF CONTENT. v LIST OF FIGURES.
vii LIST OF TABLES .viii LIST OF ABBREVIATIONS. ix CHAPTER 1: INTRODUCTION. Background of the Study. Overview of global environmental challenges and sustainability.
The role of ICT in modern society. Importance of studying the impact of ICT on environmental sustainability. Impact of ICT development on GHG emissions and sustainability. 9 CHAPTER 2: LITERATURE REVIEW.
Concepts of environmental sustainability and ICT. Theories and models related to ICT and sustainable development. Impact of ICT development on GHG emissions and sustainability. GHG emission and ICT development in Vietnam.
19 CHAPTER 3: RESEARCH METHODOLOGY. Research method approach. Data Collection Methods. Empirical results and discussion.
32 CHAPTER 4: POTENTIAL OF APPLYING ICT/ INDUSTRY 4.0 TO PROMOTE GREEN AND SUSTAINABLE DEVELOPMENT IN VIETNAM. The calculation of impact. 55 CHAPTER 5: CONCLUSION AND POLICY RECOMMENDATIONS. 85 vi LIST OF FIGURES Figure 1: The United Nations Commission for Sustainable Development (UNCSD) theme indicator framework.
4 Figure 2: The Wuppertal sustainable development indicator framework. 5 Figure 3: Vietnam’s GHG emission in 1994-2014. 19 Figure 4: CO2 emission to GDP ratio of East Asian countries. 19 Figure 5: Multiple Graphs.
27 Figure 6: Variable Loading Plots Output. 29 Figure 7: Eigenvalue Plots Output. 29 Figure 8: The impact of Industry 4. 38 Figure 9: Environmental, economic and social impacts of E-Health.
40 Figure 10: Environmental, economic and social impacts of E-learning. 42 Figure 11: Environmental, economic and social impacts of Smart Energy. 45 Figure 12: Environmental, economic and social impacts of Smart Building. 46 Figure 13: Environmental, economic and social impacts of Smart Logistics.
49 Figure 14: Environmental, economic and social impacts of Smart Manufacturing. 52 Figure 15: Environmental, economic and social impacts of Smart Agriculture. 53 Figure 16: Environmental, economic and social impacts of E-Business. 54 vii LIST OF TABLES Table 1: Vietnam’s GHG emission in 1994-2014.
18 Table 2: Vietnam’s internet and mobile phone subscription. 20 Table 3: Description of the variables. 25 Table 4: Descriptive Stats Output. 27 Table 5: Correlation Table.
27 Table 6: PCA Table Output. 28 Table 7: Variables' descriptive statistics. 30 Table 8: Variance Inflation Factors (VIF). 31 Table 9: Hausman test results.
31 Table 10: Panel analysis of developed countries, developing countries, and global sample. 33 Table 11: List of developed and developing countries (138 countries). 68 Table 12: Making Principal Component (ICT). 1: Hausman Test results for Developed countries.
2: Hausman Test results for Developing countries. 3: Hausman Test results for Global – Full sample. 1: Pooled least squares estimation. 2: Fixed effects estimation.
3: Random effects estimation. 4: Generalized Method of Moments (GMM). 5: Pooled least squares estimation. 6: Fixed effects estimation.
7: Random effects estimation. 8: Generalized Method of Moments (GMM). 9: Pooled least squares estimation. 10: Fixed effects estimation.
11: Random effects estimation. 12: Generalized Method of Moments (GMM). 83 viii LIST OF ABBREVIATIONS BAU Business-As-Usual Scenario CDM Clean Development Mechanism CDP Carbon Disclosure Project CERs Certified Emission Reductions CO2 Carbon dioxide CSD Cross-sectional dependence DCs Developed countries EB Executive Board EF Ecological footprint EKC Environmental Kuznets curve FEM Fixed-effects model GDP Gross Domestic Product GDPC GDP per capita GG Green Growth GHGs Greenhouse gases GNIP Gross national income per capita GoV Government of Vietnam GS Gold Standard HDI Human Development Index ICT Information and communication technology IEA International Energy Agency INDC Intended Nationally Determined Contribution LDCs Less developed countries LTS Long-term Strategy MPI Ministry of Planning and Investment NAMAs Nationally Appropriate Mitigation Actions NDC Nationally Determined Contribution NTP-RCC National Target Programme to Respond to Climate Change The Organisation for Economic Cooperation and OECD Development PCA Principal component analysis PCSE Panel-corrected standard errors POLS Pooled ordinary least squares REM Random-effects model SDGs Sustainable Development Goals ix SGMM System-generalized method of moments TNOs Telecommunication network operators’ companies UNCSD The United Nations Commission on Sustainable Development UNFCCC United Nations Framework Convention on Climate Change VCS Verified Carbon Standard VIF Variance inflation factor VSDGs Vietnam Sustainable Development Goals WBCSD World Business Council for Sustainable Development WDI World Development Indicator WRI World Resources Institute WSA World Systems Analysis x CHAPTER 1: INTRODUCTION I. Background of the Study 1.
Overview of global environmental challenges and sustainability. Over the past few decades, environmental issues have gained global significance due to their widespread impact and the socioeconomic factors that contribute to them. Initially, concerns centered on pollution from industrialization and urbanization, such as air and water contamination in the U. during the 20th century.
By the 1960s, awareness expanded to include issues like soil erosion, pesticide contamination, deforestation, and declining wildlife, brought to light by environmental scientists, activists, and policymakers. These concerns have since merged into the broader concept of environmental degradation (Dunlap & Jorgenson, 2012). Key events such as the first Earth Day in 1970 and the 1972 United Nations Conference on the Human Environment in Stockholm were instrumental in elevating the concept of "environmental quality" to an international level. By the time the United Nations Conference on Environment and Development was held in Rio de Janeiro in 1992, significant "Green Parties" had emerged in Europe, and environmental issues had captured the attention of both citizens and governments worldwide.
Today, environmental challenges, particularly those related to human-induced climate change, continue to be a major focus on the global policy agenda (Dunlap & Jorgenson, 2012). The concept of "environmental problems" is widely recognized but often lacks clarity. To better understand these issues and how they arise from human interactions with the environment, it is useful to apply some basic ecological principles. Ecologists observe that the environment offers various "goods and services" to humanity (de Groot et al., 2002), which can be grouped into three primary functions that support both human and other species' populations (Dunlap & Catton Jr, 2002).
Firstly, the environment supplies essential resources for life, including clean air, water, food, shelter, and natural resources used in industrial economies. This role, known as the "sustenance base," functions as a "supply depot" by providing renewable and non- renewable resources. However, overexploitation of these resources, such as water (renewable) and fossil fuels (non-renewable), can lead to shortages and potential scarcities. Secondly, as humans consume resources, they generate waste products.