Dynamics of Digitalization and Energy Efficiency in Developing Countries: An Empirical Analysis

Iqra Mushtaq, Abre-Rehmat Qurat-ul-Ann — Fri, 07 Jun 2024 00:00:00 +0000

This study examines the impact of digitalization on energy and environmental efficiency in developing countries using panel data from 2010 to 2020. Energy efficiency is measured using energy intensity per unit of output while environmental efficiency is measured using CO₂ emissions per economic output. The estimates of the two-step system Generalized Method of Moments (GMM) reveal that all proxies of digitalization except telephone subscription show a negative effect on energy intensity, leading to enhanced energy efficiency. The research finds significant differences in the effect of digitalization on energy intensity and carbon emission intensity indicating that although developing countries have gained significant benefits of the digitalization process in terms of achieving environmental efficiency, they require focused actions in terms of improving energy efficiency and achieving sustainable development goals. The findings of the research provide valuable insights regarding the promotion of digital transformation particularly in the energy sector in the developing countries where they lack in accelerating the effect of the digitalization process.

JEL Code: O13; O31; O33; P18; P28; P33; Q21

AI and Public Policy: A Developing Country’s Perspective

Sheraz Alam Malik — Wed, 26 Jun 2024 00:00:00 +0000

Artificial intelligence (AI) is a disruptor for the public and society on multiple levels. This includes human learning, knowledge comprehension, technology application and process efficiencies. These multi-level disruptions require comprehensive policy formulation and effective application for the overall good of society.

The development of AI policy in developing countries is vital and unique due to a multitude of factors. They have typically higher population densities, lower internet penetration, variable rates of technology adoption and evolving legislation around emerging technologies due to less exposure (Filgueiras 2022). These factors make the formulation of AI policy in developing countries distinctly different from developed countries where either the legislation is developed fully or close to the developed ones (Scherer 2015).

Within the developing countries, Pakistan can be considered as a representative sample as it consists of most of the population which is young, and tech-savvy and the IT industry is vital for the country’s export revenues (Chohan and Akhter 2021). Exploring the design of the public AI policy for a country with these unique characteristics is quite interesting.

Early approaches to public policymaking usually follow one of the two approaches. One is restrictive, early and often gets ahead. Whereas others are passive, multi-stakeholders based and adapt as you go. As we are unaware of the future of AI so advocating any of the two can result in uncertainty and risks for society at large (Valle-Cruz et al. 2019).

Our limited knowledge at this stage of this emerging technology can result in a policy which can be proscriptive and top-down. This can be counterproductive as AI architecture has shown Algorithm bias and hallucinations which are high risks to its wider implementations. Therefore, overall, policy contours should incorporate these key factors: should have legal oversight but enough freedom of use and application to be allowed, sufficient safeguards against misuse, foster collaboration, room for innovation, increase awareness and breaking new grounds of discovery for future breakthroughs.

In conclusion, if proper legal framework and policy guidelines are made available soon for developing countries like Pakistan it will give them a head start in AI innovations and its associated fields like healthcare, IT, supply chain, finance and learning technologies. It will also aid in the emergence of a knowledge economy where humans and technology interact for the betterment of society and long-term sustainable progress.

Journal of Development Policy Research & Practice (JoDPRP)

Dynamics of Digitalization and Energy Efficiency in Developing Countries: An Empirical Analysis

AI and Public Policy: A Developing Country’s Perspective