The role of information and communication technology (ICT) is discussed both with respect to economic
growth and green global modernization. ICT stands for the
most innovative sector in the EU and the USA. High productivity growth and digital product innovations are characteristics
of this sector; at the same time, ICT products are considered to
be an enabling technology in other sectors. While digital
technological progress may be anticipated—including the
expansion of the Internet—to contribute to raising efficiency and more green economic growth, there are considerable risks of rebound effects in the ICT sector. The
findings for the impact of an expansion of green ICT in
Germany show small significant effect on output and relatively more important effects on the reduction of greenhouse gases. Hence the simulation results from the PANTA
RHEI model suggest that green ICT dynamics could be a
useful element of sustainable development in Germany and the
EU, respectively.