Environmental Implications
of the Emerging Digital Economy
Ki-Bok Chang
The relationship between digital economy and the environment is in its early stages, so it is difficult to make definitive judgements. There are many positive effects that have been created by digital economy. It seems likely to increase dematerialization, reduce waste, increase resource efficiency, and cut costs for government.
However positive the digital economy can be if aimed in a sustainable direction, it is important to acknowledge that digital technology is not a panacea to our environmental problems. One key challenge form an environmental perspective is that the main driving force today behind the emerging digital economy is not sustainable development, but urge for short term profit. Occasionally these goals may result in a better environment, but this is relatively rare.
The conclusion we draw from our analyses is can be summarized as follows. First, the new economy will only develop along more environmentally sustainable lines if technological, social, organizational and political innovations work in combination. Environmental benefits of digital economy are only achievable if market and regulatory developments keep pace. Similarly, the future success of the digital economy will depend upon progress towards a clean, efficient and integrated social infrastructure.
Second, in the digital economy, information plays a more central role in environmental governance. Traditional environmental regulation is being complemented by voluntary and market-based policy instruments;