European Information Technology Observatory (EITO) - The Impact of ICT On Sustainable Development

European Information Technology Observatory · E I T O 2002
250
The impact of ICT on sustainable development
This paper has been provided by Forum for the 2. What is sustainable
Future in close co-operation with the EITO Task development?
Force.
Although there are many definitions of sus-
tainable development, the most commonly
1. General overview
quoted comes from the Brundtland Commis-
The chapter aims to: sion’s 1987 report, “Our Common Future”.
– introduce the concept of sustainable devel- Here, sustainable development is defined as
opment; “development which meets the need of the
present without compromising the ability of
– examine the impacts and opportunities
future generations to meet their own needs”. 1
created for sustainable development by the
rapid penetration of ICT into society and This chapter defines sustainable develop-
culture; ment as:
– suggest the means for mitigating adverse af- A dynamic process which enables all people
fects and encouraging positive outcomes for to realise their potential and improve their qual-
all in the penetration of ICT. ity of life in ways that simultaneously protect
An innovative framework has been devel- and enhance the Earth’s life-support systems. 2
oped that allows a detailed and comprehensive Implicit here is that economic, social and
analysis of the environmental, social and eco- environmental dimensions are equally vital and
nomic effects and opportunities of ICT in the inter-connected:
context of sustainable development.
– Economic sustainability means economic
The chapter will conclude that in some cases growth without making undue demands on
ICT is of direct benefit to the goals of sustain- social or natural resources.
able development, and in others detrimental. In – Environmental sustainability means not only
most cases, however, the overall effects will minimising impacts on the environment, but
only become clear in the medium to long term. building natural resources and safeguarding
It is shown that despite its great potential, them for the future.
ICT is not in itself a force for sustainable devel- – Social sustainability means building, and not
opment, but has both positive and negative ef- undermining, social equity.
fects. In order to maximise the positive effects 1 Brundtland Commission,
and minimise the negative, the development “Our common Future”,
1987
and application of ICT should be guided by
policy makers in government, business and civil 2 Forum for the Future
definition of sustainable
society. development.
Part Two · E I T O 2002 The impact of ICT on sustainable development
x
x 251
x
Together these three spheres of sustainabili- Yet the potential for integration between
ty are commonly referred to as “the triple bot- policies on sustainable development and the
tom line”, a term first coined in 1997 by John transition to eEurope remains under-exploited.
Elkington, director of the sustainable develop-
ICT presents opportunities to resolve tradi-
ment consultancy SustainAbility. 3 As well as
tional trade-offs between economic growth, the
setting goals for economic performance, busi-
environment and social cohesion. Equally, there
nesses and economies should also set social and
is the opportunity to integrate sustainability cri-
environmental performance goals. Most impor-
teria into the Information Society at an early
tantly, performance in one sphere should not
stage in its development, maximising the social
undermine performance in the other two.
and environmental opportunities of ICT and
mitigating its adverse impacts.
2.1. Sustainable development
and ICT 2.1. 2. Challenges in integrating the
agendas of sustainable development
The growing acceptance of sustainable de-
and the Information Society
velopment as a goal and the progress of ICT
share many characteristics as drivers for change In assessing the overall sustainability im-
within modern economies. Both require us to pacts of ICT, several challenges must be con-
rethink the nature of goods and services and sidered:
both have the capacity to transform the rela- – The development and application of ICT
tionship between governments, companies, citi- through the economy and society is as yet at
zens and consumers. However, there have been an early stage. It is still only possible to take
surprisingly few attempts to assess whether the an educated guess as to the medium- and
growing acceptance of the sustainable develop- long-term effects.
ment agenda and the growth of ICT will com-
– ICT is pervasive and enabling and, by any
plement or conflict with one another.
measure, is advancing rapidly in terms of
2.1.1. Sustainable development power, performance and affordability. These
and ICT policy convergence trends are unlikely to change in the near
term. ICT drives the advance of other new
Figure 1 illustrates convergence between the
technologies, whose impacts need to be as-
two policy agendas for sustainable development
sessed separately. Radical new technologies
and the Information Society.
such as biotechnology have the potential to
With the Information Society and sustain- entirely change the current terms of refer-
able development both policy priorities, integra- ence of the links between ICT, the economy,
tion between the two policy agendas should be society and the environment.
inevitable. The Lisbon agenda refers to eco- – ICT is constantly giving rise to new social
nomic sustainability and social cohesion, and phenomena which need to be factored into
the eEurope Action Plan places significant em- the equation. One example is the develop-
phasis on social inclusion in the Knowledge ment of online communities.
Society through investment in people and skills.
The conclusions of the Göteborg European
3 Elkington, J. “Cannibals
With Forks: The Triple Council refer to the need to “promote innova-
Bottom Line of tion to develop new technologies which use
21 st Century Business”,
Capstone, Oxford, 1997 fewer resources and reduce pollution”.
252
Figure 1
Sustainable development Information Society Sustainable
development and ICT
policy convergence
UN Earth Summit, Rio, 1992
Global action plan agreed by b
149 countries endorsing the aims 1999
of sustainable development European Commission launches
“eEurope” strategy
b
Treaty of Amsterdam, June 1997
Member states strengthen commitment b
to considering environmental and social Lisbon European Council,
cohesion in all policy areas March 2000
Heads of state agree to make Europe
b “the most competitive and dynamic
Helsinki European Council, knowledge-based economy in the world,
December 1999 capable of sustainable economic growth
with more and better jobs and greater
European Commission commits to social cohesion”
putting forward proposal “dovetailing
policies for economically, socially and
ecologically sustainable development” b
June 2000, eEurope Action Plan
2002 agreed
b
Göteborg European Council, ICT to drive knowledge economy.
June 2001 Commitment to:
– Better Internet access
Environmental dimension added to – Investment in people and skills
Lisbon agenda. Sustainable development – Greater use of the Internet
defined as central to all
b b b
World summit on sustainable development Johannesburg, September 2002
EU to seek a global deal on sustainability. Strategy explicitly mentions
potential for Information Society to “strengthen economic development
with less pressure on the environment, while ensuring access and
capacity for developing countries”
x
x 253
x
– In response to the development of ICT, new above. Since these spheres in reality exist in a
regulations are constantly coming into force. dynamic relationship, the evaluation stage at
By channelling the development of ICT in a the end of this chapter will be an opportunity to
particular direction, regulations may pro- make broader, overall assessments for sustain-
mote or impede synergies between ICT and ability as a whole, highlighting the linkages
sustainable development. The effects of new across the triple bottom line.
regulation need to be understood and fac-
The effects of ICT have also been separated
tored into new research being undertaken.
according to the different stages in their devel-
– Despite the growing body of research, many opment and deployment. This allows the identi-
data gaps still exist and there is much dis- fication where possible of how a positive oppor-
agreement in certain areas. tunity may over time have a negative spill-over
or vice versa and hence where action could be
3. The framework for analysis taken to maximise the positive outcomes. Ef-
Research to date into ICT and sustainability fects are divided into first, second and third
has failed to create a conceptual framework that orders, as shown in Table 1.
presents an aggregated picture of the impacts Within each cell of the framework, key areas
and opportunities of ICT and sustainability over have been selected that demonstrate the extent
time. Without such a framework, determining of existing understanding. While positive effects
how to maximise the potential opportunities cannot be categorically separated from negative,
and minimise the negative impacts of ICT and where possible attempts are made to highlight
sustainable development is problematic. the current balance between the two.
For the sake of clarity the three-spheres mo-
del of sustainability has been used, based on
Elkington’s triple bottom line as described
Impacts/opportunities sphere
First order Second order Third order

The impacts and oppor- The impacts and oppor- The impacts and oppor-
tunities created by the tunities created by the tunities created by the
physical existence of ICT ongoing use and aggregated effects of
Sustainability sphere
and the processes involved. application of ICT. large numbers of people

This includes the design, For example, this using ICT over the
manufacture, operation includes E-business. medium to long term.
and disposal of ICT. For example, this includes
the changing nature of
relationships between
business and markets.
Environmental Section 4.1 Section 4.2 Section 4.3
Table 1 Social Section 5.1 Section 5.2 Section 5.3

The framework for Economic Section 6.2 Section 6.3 Section 6.4
analysis
254
4. Environmental sustainability and ICT

Table 2 below summarises the environmental effects and opportunities created by ICT.
Table 2
First order effects Second order effects Third order effects Environmental
Design and manufacture of Increase and decrease in use of De-coupling economic growth and sustainability and ICT
ICT equipment transport energy consumption
– ICT production is a relatively – Increase in home deliveries as a – Possibilities of reducing energy
lightweight industry result of E-commerce will have used per unit GDP
– Use of toxic components significant environmental impact
– New waves of technology are unless well co-ordinated
more energy-efficient – Telework reduces travel miles
for employees
– Telematics reduces traffic
congestion, journey times and
therefore pollution
– Rebound effects from increased
leisure travel
Operation of ICT equipment ICT in business systems De-coupling economic growth

and carbon emissions
– Energy use even in – B2B E-commerce and ICT- – Possibilities of reducing carbon
stand-by mode managed control systems create dioxide emissions per unit GDP
efficiencies and reduce environ-
mental impact
Disposal of ICT equipment Virtualisation of material products Changing settlement patterns

– Problematic disposal – Possible environmental savings – Conflicting pressures on local
– Recycling and safer designs from increased trade in settlement
increasing intangibles – Possible increase in environ-
mental pressure on regions
Effects on product lifetimes

– Some E-commerce business
models extend product lifetimes
– Product development cycles are
often reduced by use of ICT
Distribution and manipulation of

environmental information
– Significantly enhanced by ICT
x
x 255
x
4.1. First order impacts – A study for the European Union in 1998 5
and opportunities suggested that the production of a personal
computer, including material production,
Production of ICT equipment does not place
manufacture and distribution, would lead to
the same level of demands on natural resources,
the release of 0.19 tonnes of greenhouse
nor is it as polluting, as many other industries.
gases, 36 kg of overall waste, and require
The design, manufacture, operation and dis-
3.6 GJ of energy.
posal of ICT does however have an overall
negative impact on the environment, although Efforts are being made to minimise the
some action can be taken to mitigate these im- amount of resource needed in the production of
pacts. ICT. This makes economic as well as environ-
mental sense.
4.1.1. Design and manufacture
of ICT equipment – More efficient chips mean more processing
power for the amount of resource/energy re-
There are elements included in the design quired. Every generation of chips reduces in
and manufacture of ICT that could be seen as size by approximately a factor of 0.7. 6
unsustainable.
– Mobile telecoms network operators are in-
Damaging materials are used in ICT compo- vestigating the possibility of using renewable
4 http://www.news-journalon-
nents, for example: or low-impact energy sources to power base
line.com/2001/Apr/30/
– The batteries in mobile telephones contain stations.
AREA1.htm. Although a
large proportion of this toxic metals such as lithium or cadmium. – The manufacture of mobile phones now in-
water can be reused for
other purposes, no micro- The ores of such metals must be quarried corporates measures such as material identi-
chip manufacturers cur- fication and easy disassembly, to make recy-
rently recycle water for re-
and then undergo lengthy and expensive
use in the washing process, refinement processes, causing significant en- cling easier.
as the water must be pure
vironmental disruption.
and particle-free.
4.1. 2. Operation of ICT equipment
5 Atlantic Consulting (1998), – Cathode ray tubes contain large amounts of
“LCA study of the product
lead, shown to have high levels of toxicity. Operation of ICT equipment accounts for
group personal computers
in the EU Ecolabel the greatest demands on energy and natural re-
– Many devices are coated with flame re-
Scheme” sources. For example, the use phase of a perso-
tardants that contain toxic compounds.
6 Schauer, T., “What are the nal computer in the EU has been calculated to
conditions for a sustainable
Information Society?” The manufacture of ICT equipment is re- produce 0.45 tonnes of greenhouse gases, 108
In: Towards a Sustainable source-intensive: kg of waste and 10 GJ of energy per unit 7 – sig-
Information Society: Report
of the Conference on 21–22 – One study showed that the production of the nificantly more than in the production process,
February 2000
average computer chip requires 45.46 litres as Table 3 illustrates.
7 Atlantic Consulting (1998),
“LCA study of the product of water, used primarily for washing. One
group personal computers chip plant in the USA uses between 4.5 and
in the EU Ecolabel
Scheme” 13.5 million litres of water a day. 4
Production phase Use phase Disposal phase
Greenhouse gases 0.19 tonnes 0.45 tonnes 0.022 tonnes
Table 3 Waste 36 kg 108 kg 21 kg

Operation of Energy 3.6 GJ 10 GJ –
ICT equipment
256
When it is considered that PC penetration in In 2000 the European Commission estimat-

the European Union is currently around 40 %, ed that the EU produces six million tonnes of
personal computer use in absolute terms is Waste Electrical and Electronic Equipment
clearly extremely resource-intensive. 8 (WEEE) a year. A report by the Industry Coun-
cil for Electronic Equipment Recycling 10 put the
The impact on energy demands at the first
UK figure alone at one million tonnes, 90 % of
order is only likely to increase in the short and
which was large ICT equipment.
medium term, as ICT becomes more embedded
in society, types of device and the functions Dealing with electronic waste without
they perform proliferate, and as penetration damaging the environment is a major challenge.
around the world deepens. Much ends up eventually in landfill sites, where
polluting substances used in ICT components
Server farms can leach into the ecosystem.
“Server farms” – massive banks of computers As long as toxic substances are used in the
used to store the information that appears on design and manufacture of ICT, the most effec-
Websites – concentrate the use of large tive means of preventing them entering the eco-
amounts of energy, that would otherwise be system is through providing take-back and re-
more widely dispersed. While this provides cycling schemes. Many parts of ICT waste are
economies of scale, a single server farm can recyclable, but the structures to ensure that
consume as much electricity as a small airport recycling takes place on a significant level are
or four large hospitals. Where server farms not yet widely in place.
are concentrated, as in Silicon Valley or Lon-
don, they can be serious drains on local elec- Consequently, there have been calls for po-
tricity supplies. To combat this, one purpose- licy initiatives to make recycling of ICT in gen-
built server farm outside London is currently eral and toxic components in particular, man-
being built with a dedicated 24 MW gas-fired datory. Encouragingly, the EU’s WEEE direc-
power station to supply all of its energy tive, which is expected to become law in 2002,
needs. It has been suggested that renewable will require producers to ensure that 65–80 % of
energy sources could be used instead in electronic waste is recovered and recycled.
future projects of this type. 9
4.2. Second order impacts
4.1. 3. Disposal of ICT equipment and opportunities
The average lifetime of a PC used for busi- The application of information and commu- 8 http://cyberatlas.internet.
ness purposes is three years, and in Europe the nications technology has a more ambiguous ef-
com/big_picture/
geographics/article/
replacement cycle of a mobile phone is 18 fect on the environment than that of the crea- 0,,5911_429391,00.html
months. As technology moves on and more tion of the equipment. In many areas it may 9 “The Internet’s new
functions and capacity are offered, the number create efficiencies leading to “dematerialisa-
borders”, The Economist,
11 August, 2001
of obsolete or undesirable products increases. tion”: a reduction in the quantity of natural re- 10 ICER, “ICER status report
sources required to support human activity. on WEEE”, March 2000
x
x 257
x
Figure 2
The effects of ICT
on the use of transport
Decrease Increase
E-commerce reduces need More deliveries
to travel to shops
Teleworking reduces need Geographically longer supply chains
to travel to work
Telematics reduces congestion and Rebound effects
shortens journeys
m n
? ?
Benefit to the environment
4. 2.1. Increase and decrease However, once the corresponding increase

in the use of transport in delivery traffic and extended supply lines are
factored in, the picture is slightly different. A
There is conflicting evidence of the impact
study commissioned by the Netherlands govern-
of ICT on travel. Figure 2 shows that, while
ment predicted that if E-commerce makes up
E-commerce and telework reduce the need to
11.5 % of retail sales by 2005, road traffic will in-
travel and telematics systems may make car
crease by 17 %.
transport more efficient, counter-trends exist,
and the balance of benefit to the environment The main variables to consider in the equa-
has yet to be established. tion are the methods of product delivery, the
11 “Motors and Modems uptake of B2C E-commerce and the consequent
Revisited”, NERA, i. E-commerce and travel
London 2000 changes in consumer leisure habits.
12 “@ Your Home”. Accord- Home shopping over the Internet should re-
ing to a study by the
As a recent report from the UK govern-
duce the need for consumers to make car jour-
Swedish University of ment’s Foresight research programme shows,
Agricultural Sciences, co- neys to shops. According to the National Eco-
ordinating the delivery of there is much to be gained from co-ordinating
stock to 15 different loca- nomic Research Associates, home shopping will
home deliveries to minimise the distance trav-
tions using ICT reduced reduce car-based shopping travel by 5 % by 2005
the total distance travelled elled, for example by utilising local drop-off
by 39 % and the number of and 10 % by 2010. 11 The consequent reduction in
journeys by 58 % (Lennart points rather than delivering directly to homes,
Forseback, Case Studies vehicle emissions would be significant.
for the Information
and through co-operation between different re-
Society, IST, May 2000). tailers. 12
258
The net effects on transport will remain un- or slow-moving traffic. The effect is to signifi-
clear however until B2C E-commerce is pro- cantly reduce congestion and travelling time,
perly established. The eEurope Action Plan and therefore vehicle emissions. ITGS was
Benchmarking Report 2001 13 shows that cur- shown to reduce travelling time in rush hours
rently in the EU as a whole fewer than 5 % of by 50 % compared to conventional static naviga-
Internet users make online purchases regularly, tional systems. 18 The Dutch government aims in
approximately 1.7 % of the population. its programme, “Telematics in traffic and trans-
port” to reduce vehicle miles within the Nether-
ii. Telework and travel
lands by 25 % in the period 1998–2003, in part
Remote working using the Internet to access through its use of ITGS.
office systems, for example via Virtual Private
iv. Rebound effects
Networks or using teleconference and videocon-
ference technology, 14 has been possible for a The application of ICT in trade, work and
long time. A barrier to widespread take-up has travel systems could on balance cut the de-
been the lack of broadband access in homes, mands of transport on the environment. How-
but in some parts of Europe broadband avail- ever, it is unclear what consumers do with the
ability is increasing rapidly. 15 time that they save by ordering goods online 13 http://europa.eu.int/
rather than making a car journey to the shops, information_society/
When promoted by employers, teleworking eeurope/benchmarking/
or what teleworkers do with the time they save index_en.htm
has been shown to significantly reduce travel
by not driving to work. Is this extra time used
miles. One Swedish company with 200 employ- 14 Telephone and video-
to make additional journeys by car, for leisure conferencing at BT has
ees has managed to reduce home-to-work travel created savings of 150
purposes perhaps, that otherwise would not
by 74,000 km a year. 16 One major European - million miles across all
have been made? Similarly, when drivers see modes of transport and
telecommunications company now has 4,000 avoided emissions of
open roads and free-flowing, telematics-control- another 34,000 tonnes of
homeworkers who between them save approxi- CO 2 . For more information
led traffic, will they be tempted to drive more,
mately 12.5 million commuter miles per annum see James Wilsdon (ed.),
in the same way that building more roads seems “Digital Futures: an
– equating to a saving of 1,000 tonnes of carbon agenda for a sustainable
to create more traffic? These “rebound” effects digital economy”, 2001
dioxide emissions. 17
pose complex research questions that must be 15 See “The Development
iii. Telematics: answered before the net contribution that ICT of Broadband Access
Platforms Across Europe”
efficient transport using ICT is making to environmental protection can be report for the European
accurately judged. Commission, available at
One means of ensuring more efficient travel http://www.europa.eu.int/
information_society/
patterns for all vehicles is the utilisation of tele- 4. 2. 2. ICT in business systems eeurope/news_library/
matics systems. The term telematics has evolv-
ICT has had a positive effect on business 16 Lennart Forseback, “Case
ed to refer to in-car systems that combine Glo- studies of the Information
efficiency, for example through: Society and Sustainable
bal Positioning Satellite (GPS) tracking and Development”, May 2000
other wireless communications including access – consolidating supply chains through the use
17 James Wilsdon (ed.),
to the Internet. The most significant application of B2B E-commerce portals; “Digital Futures: an
agenda for a sustainable
of this technology is Intelligent Traffic Guid- – use of E-procurement in larger organisa- digital economy”, 2001
ance Systems (ITGS). ITGS can plot the tions, bringing economy of scale savings; 18 Schauer, T., “What are the
quickest or most efficient route from A to B, – use of computer-driven management sys- conditions for a sustainable
Information Society?”
taking into consideration traffic flow systems tems and the implementation of databases; In: Towards a Sustainable
such as one-way streets or speed controls and, Information Society:
Report of the Conference
more importantly, avoiding areas of congested on 21–22 February 2000
x
x 259
x
– use of telematics in manufacturing pro-
cesses; The energy use of the Internet
– use of ICT to monitor office systems such as The Internet is central to hopes for a “weight-
air-conditioning. less” new economy, but a heated debate rages
over the real energy demands it exacts.
An office supply company established an Mark Mills in a Forbes article, “The Internet
Internet-based invoicing system and cut the begins with coal” 21 asserted that use of the In-
amount of paper it used from 13 million sheets ternet accounts for as much as 8 % of the to-
a year to one million sheets a year. 19 tal electricity demands of the US, and that
Such systems are generally introduced into therefore energy capacity in the US needs to
companies because they represent medium-to be increased to meet the demands of the new
long-term cost savings. Often however, cost economy. Others 22 have maintained however
savings are reflected as environmental savings, that the figure is much lower, at around
as more efficient processes require less energy 1–2 %. The only European study to date was
and create less waste. conducted by the Wuppertal Institute in Ger-
many in 2000. It estimated that use of the In-
For example, an efficiency programme using ternet accounted for 1 % (4,000 Gigawatts) of
heating, ventilation and air-conditioning control Germany’s electricity demand. 23 The institute
systems in a New York college saved € 11.2 mil- is now conducting research to show the ener-
lion at the same time as cutting energy use by gy implications of one hour of Internet use.
20,000 kilowatts 20 and carbon dioxide emissions
by 48,000 tonnes. The broad range of estimates is due partly to
a lack of information about levels of usage.
4. 2. 3. Virtualisation of material products Also crucial is where the boundaries of use
19 Financial Times article
The application of ICT can decrease the are drawn: should analysis stop at the direct
Thursday 6 December 2001
amount of material products circulating in some energy consumption of PCs, networks and
20 http://www.nypa.gov/
areas of the economy. “E-books”, which exist servers, or should it be extended to include
21 Mark Mills, “The Internet
only as downloadable electronic files, are one second and third order effects, where the data
begins with coal: a prelim-
inary exploration of the example: Penguin books planned to have 200 is more ambiguous?
impact of the Internet on
electricity consumption”, titles available electronically by the end of 2001. However, in practice, the virtualisation of
1999
The result could be the use of less paper in the products may be balanced by a counter-process
22 Joseph Romm, “The publishing industry, less glue for binding, less of “devirtualisation” in which E-books and on-
Internet economy and
global warming”, Center filler for glossy pages, less freight on the trans- line bank statements are printed out and MP3
for Energy and Climate
Solutions, 1999; Koomey
port network and so on. The technology used files burned onto CDs. If enough virtual prod-
et al., “Initial comments by MP3 files similarly could result in the pro- ucts are subsequently devirtualised, the net im-
on “The Internet begins
with coal”, 1999 duction of fewer CDs. Likewise online banking pact on the environment is much greater than if
23 Barthel, C., Lechtenböh-
means that printed statements are no longer no virtual products existed in the first place: the
mer, S. und Thomas, S., necessary. resources used in producing the virtual product
www.internet.CO 2 ,
Wuppertal Institute, 2001 are added to those used when consumers
260
Figure 3
Virtualisation of
material products
Devirtualisation of
virtual product
Energy
consumption
Material production Virtual production
Positive environmental effects will only accrue from the virtualisation of material goods if the
efficiencies of the virtualisation process are not undermined by inefficient “devirtualisation” en masse.
produce the material product themselves in a In similar fashion, ICT provides the means
process where the efficiencies of large-scale, for producers to match supply and demand
centralised production are lost, as illustrated in more closely and so reduce wastage through
Figure 3. over-production. Many seats go unoccupied in
aeroplanes for example. Some E-commerce
4. 2.4. Effects on product lifetimes
sites offer these seats at a lower price and
Use of ICT in the design and manufacturing thereby increase the running efficiency of the
processes of a wide range of products creates airlines.
shorter product cycles. New products can be de-
4. 2. 5. Distribution and manipulation
signed and produced at a faster rate and so be-
of environmental information
come obsolete sooner.
The distribution and manipulation of envi-
However, ICT also offers the opportunity to
ronmental data has been enhanced by ICT. The
extend product lifetimes by facilitating online
availability of this data has been invaluable in
exchanges. For example, online auction sites
making the case for and enabling environmental
are able to put an unprecedented number of
action.
buyers and sellers in contact with each other.
One such site claims 30 million registered users ICT has been used to collect, collate and de-
and 5 million items for sale worldwide at any liver the data that provides evidence of environ-
one time. mental decline: the amount of rainforest being
cleared in Brazil, the level of greenhouse gas
x
x 261
x
Table 4 ICT has enabled and will enable action to be
Electricity consumption Electricity 1980 1998
consumption (kilowatt-hours) (kilowatt-hours) taken to halt environmental decline. The Kyoto
per capita 24
per capita Protocol on climate change in 1995 established
the principle of global emissions trading, to al-
Austria 4,371 6,175
low countries that have not been able to reduce
Belgium 4,402 7,249 emissions to compensate those that have. The
Denmark 4,222 6,033
complex calculations necessary for this would
not be possible without ICT.
Finland 7,779 14,129
France 3,881 6,287 4.3. Third order impacts

and opportunities
Germany 5,005 5,687
The aggregated effects of the widespread use
Greece 2,064 3,739 of ICT on the environment are difficult to iden-
Ireland 2,528 4,760 tify and to measure. They depend very much on
how the increasing use of ICT in all aspects of
Italy 2,831 4,431
human activity effects consumption and eco-
Luxembourg 9,803 12,400 nomic efficiency. As ever, though, isolating the
effects of ICT from those of other social, eco-
Netherlands 4,057 7,322
nomic and technological trends is problematic
Norway 18,289 24,607 and prevents us as yet from reaching any form
of confident conclusion.
Portugal 1,469 3,396
Spain 2,401 4,195

4. 3.1. De-coupling economic growth
and energy consumption
Sweden 10,216 13,955
Evidence for the de-coupling of economic
Switzerland 5,579 6,981 growth and energy consumption is conflicting.
UK 4,160 5,327 One study 25 argues that whereas traditionally
GDP growth in the US has been directly corre-
lated to growth in energy demand, in 1997 and
emissions in Europe, ultraviolet radiation in 1998 the US economy grew by 8 % but energy
Antarctica and so on. Making much of this data demands grew by only 1 %. If there had been no
available on the Web has given a wide commu- structural changes to the economy, a 6 % in-
nity of researchers and policy makers the re- crease in energy demand would have been ex-
sources to carry out their work and make the pected in this period. The authors of the study
arguments that have put the environment on attribute the discrepancy to the increasing use
the agenda. The understanding of the process of of ICT.
global warming would be dangerously super-
ficial were it not for the use of powerful com- However, electricity consumption per capita
24 UN Human Development
puters in developing climate change models, for increased in Europe between 1980 and 1998 as
Report 2001, Human
Development Indicators, example. Table 4 shows. While energy intensity per unit
p. 200 of GDP generally decreased in developed coun-
25 Romm, “The Internet tries, it is problematic to identify increased use
Economy and Global
Warming: A Scenario of of ICT as the driving factor rather than other
the Impact of E-commerce structural changes in the economy or direct at-
on Energy and the Envi-
ronment”, 1999 tempts to conserve energy.
262
4. 3. 2. De-coupling economic growth The adoption of ICT at a local level pro-

and carbon emissions duces two conflicting pressures: agglomeration
and dispersion.
Similarly, although research has predicted
that dematerialisation of the US economy It remains to be seen which of these pro-
through the adoption of E-commerce will lead cesses is the more powerful, or indeed if either
to a net 2 % per annum reduction in CO 2 emis- process has any significant effect while planning
sions between 2000 and 2007, 26 rigorous evi- laws in most countries remain strict and focused
dence for this elsewhere is conflicting. Carbon on the carefully structured development of
dioxide emissions per unit of GDP, a good indi- compact settlements.
cation of the carbon intensity of an economy,
On a regional level, it has been conjectured
have decreased in most European countries by
that traditional infrastructure such as roads and
between 20 % and 50 % in the past two dec-
railways are less important for economic devel-
ades. 27 However, it is impossible to determine
opment than the presence of ICT network. The
whether this has been due to ICT applications
result may be to reduce the economic impor-
or a range of other factors.
tance of geographical location within countries
4. 3. 3. Changing settlement patterns and regions. E-workers can theoretically be lo-
cated anywhere they can access the Internet, as
Processes that derive from the production,
can ICT companies. The logical extension is
use and application of ICT – dematerialisation,
that more environmental pressure is placed
telework and E-commerce for example – could
away from the traditional core of economic ac-
have a far-reaching effect on patterns of human
tivity, with the necessary development of land
and industrial settlement.
for housing and amenities.
Agglomeration There is little evidence at the moment to
Effective use of ICT means that space can be support this conjecture. Indeed, a study by
used more efficiently: with E-commerce, Boldly-go.com in the UK showed that, rather
there is less need for physical shops and than being distributed equally across the coun-
banks. Offices need less space and, with less try, dot.com companies were concentrated in
traffic, better use can be made of car parks zones of traditional economic power: 80 % were
and roads. This leads to a more compact located in the south east of England, with 60 %
settlement and fewer demands on natural in London. 28
resources.
5. Social sustainability and ICT
Dispersion
Although no one has suggested that humans Table 5 summarises the social impacts and
can do away with the need to meet and social- opportunities created by ICT. 26 Romm, “The Internet
ise completely, most agree that, through mak- economy and global
warming: A scenario of the
ing telework possible, ICT has reduced the 5.1. First order impacts impact of E-commerce on
need to congregate. It becomes easier to live and opportunities energy and the environ-
ment”, 1999
in suburbs, the commuter belt or even in a While the design, manufacture and opera- 27 OECD “Key Environ-
peripheral region and do the same work. This tion of ICT has created some jobs in some mental Indicators”, p. 29
process may encourage dispersion of activities areas, the uneven distribution of the technology 28 James Wilsdon (ed.),
and therefore an increase in demands on nat- “Digital Futures: an
agenda for a sustainable
ural resources. digital economy”, 2001
x
x 263
x
Table 5
Social sustainability First order effects Second order effects Third order effects
and ICT Job creation Access to information Cultural homogeneity or cultural
diversity?
– Jobs created in production of – Health information available – ICT promotes homogeneity and
ICT equipment online diversity at the same time
– Government information
available online
Digital divide Security challenges Building local communities

– Discrepancies in distribution – Risk to users of Internet – ICT may bolster local
of access to ICT – Internet also used by criminal communities
groups
Access to better services Building civic culture

– Health services, E-learning, – ICT may encourage popular
Government services, participation in community
E-commerce and telework create affairs
opportunities for social inclusion
New communities online

– Internet enables new types
of community
Popular protest online

– Internet enables new types
of protest
is seen by many as reinforcing social exclusion, favours the highly skilled. As former US Labor
through the operation of the digital divide. Secretary, Robert Reich, argues, “a great pre-
mium is placed on people who are innovators
5.1.1. Job creation
and a rapidly decreasing value on people who
The growth rate of jobs in the Information are in routine production”. 30 The rise of the
Society in 1999 was approximately 8 % in Eu- knowledge worker threatens lower skilled work-
rope. Each job in the IT industry creates four ers with marginalisation.
jobs in the wider European economy, either up-
5.1. 2. The digital divide
stream through suppliers or downstream in
service industries which rely on packaged soft- The distribution and use of ICT has been
29 “Benchmarking Report ware. 29 New jobs in the ICT sector may have viewed as a means of narrowing the gap be-
following-up the “Strate-
gies for Jobs in the
given the individuals concerned an opportunity tween the world’s rich and poor. However, the
Information Society”, to participate in and contribute to society. difficulties of establishing universal access
Commission Staff Working
Document, February 2001 could serve to reinforce current patterns of
The overall picture is, however, less rosy.
social exclusion.
30 Lecture given at the The constant upgrading of skills required in this
London School of
Economics, 14 th May 2001 sector to keep pace with changes in technology
264
Figure 4
% Internet access –
% population 33
60
54.3
50
40
30 28.2
20
10
3.9 3.2 2.3 0.6 0.4 0.4
0
US High-income East Europe and Latin America East Asia and Arab states Sub-Saharan South Asia
OECD (not US) Commonwealth and the the Pacific Africa
of Independent Caribbean
States
Figure 4 shows that Internet access is the pre- Discrepancies in access to ICT exist within
serve of the richest countries in the world and Europe itself. While 65 % of households in Swe-
has made very little impact elsewhere. Table 6 den and 60 % in the Netherlands have Internet
illustrates the scale of difference between Euro- access, the figures for Spain and Greece are
pean Union countries and some of the poorest only 25 % and 10 % respectively. 34 Similar differ- 31 http://www.dotforce.org/
countries in the world, in terms of access to ences exist within countries, both between re-
32 http://www.digitaldividend.
telephones. As a general rule, the poorer the gions and along socio-economic lines. High in- org/index.htm
country, the less ICT is available. come earners in the EU enjoy three times 33 United Nations Human
higher Internet usage rates than low income Development Report 2001.
International initiatives such as the G8’s Figures for 2000, p. 40
earners and traditionally excluded groups such
DOT Force 31 are seeking to address the discrep-
as the elderly and unemployed, have particular- 34 http://europa.eu.int/
ancies. At the same time, some multinational information_society/
ly poor access to the Internet. 35 eeurope/benchmarking/
ICT companies are investing huge sums in ac- index_en.htm
cess for the developing world. An initiative by The European Union’s eEurope Action Plan 35 “Benchmarking Report
one ICT equipment manufacturer will see the agreed in 2000 focuses heavily on increasing on- following-up the “Strate-
gies for Jobs in the
company sell, lease or donate over € 1 billion line access by providing a cheaper, faster, more Information Society”,
worth of its products to developing countries. secure Internet, increasing public access points Commission Staff Working
Document, February 2001
According to the World Resources Institute’s and improving IT skills. 36 Within this frame-
36 http://europa.eu.int/
Digital Dividend project, there are significant information_society/
business opportunities in creating appropriate eeurope/action_plan/
actionplantext/index_en.
technologies for use in the developing world. 32 htm
x
x 265
x
Table 6
The digital divide – Country GDP per capita Telephone mainlines/ Cellular mobile
telephone penetration (purchasing power 1,000 population subscribers/
in selected countries 37 parity US$, 1999) (1999) 1,000 population (1999)
Luxembourg 42,769 724 487
Ireland 25,918 478 447
Denmark 25,869 685 495
Belgium 25,443 502 314
Austria 225,089 472 514
Netherlands 24,215 606 435
Germany 23,742 588 286
Finland 23,096 552 651
France 22,897 579 364
Sweden 22,636 665 583
Italy 22,172 462 528
UK 22,093 575 463
Spain 18,079 418 312
Portugal 16,064 424 468
Greece 15,414 528 311
Czech Republic 13,018 371 189
Poland 8,450 263 102
Angola 3,179 8 2
Pakistan 1,834 22 2
37 Mainline and cellular
telephone penetration in
Bangladesh 1,483 3 1
selected countries,
ranked by UN Human Yemen 806 17 2
Development Index, see:
UN Human Development Sudan 664 9 0
Report 2001, p. 60
Note: These figures do not always correspond with Table 8, The ICT market in Europe, and Tables 91 and 93 of the Statistical outlook.
266
work, member states have pursued various 5. 2.1. Access to information

initiatives. For example, the Danish government
With fewer resources required to publish
granted tax exemptions on computers supplied
and disseminate information on the Internet
by employers for use by employees at home
compared to any offline medium, the amount of
until January 2001. This scheme has made a
information freely circulating online is con-
significant contribution to the very high pene-
stantly growing. Information can be dissemi-
tration of PCs in Denmark.
nated so rapidly that government, business and
In order to fully realise the social opportuni- professional bodies can no longer act as gate-
ties of ICT, greater access to high-speed Inter- keepers to information as they traditionally
net connections is essential. Until large quanti- have. This presents a tremendous opportunity.
ties of data can be transmitted quickly at rela- However, sifting what is of use from what is
tively low cost, the development of E-health, available can be a difficult task: the Internet
E-government and telework will be stifled. It provides no guarantee of quality or accuracy.
has been argued that effective universal access
i. Access to health information
should be thought of as universal access to
broadband infrastructure at home; at the end of Health-related information online comes
2000, however, only 1.1 % of EU households had from a range of sources, from patients to for-
access to a high-speed ADSL connection. 38 profit companies and the public sector. At best,
it allows individuals to take greater responsibili-
Because penetration of mobile telephones
ty for their own health, promoting individual
and interactive digital televisions promises to be
well-being and ideally reducing pressure on
higher than PC penetration, these technologies
public health services. This is the thinking be-
may offer hope for more widespread access to
hind NHS Direct, 39 a public sector health portal
the Internet. There are also those, such as the
introduced by the UK government. Equally, the
Intermediate Technology Development Group,
Internet offers access to a broader range of
that argue that resources might be better devot-
health-related information than conventional
ed to cheaper “low” technology with a proven
medicine, promoting individual choice. Even
track record in alleviating poverty.
the latest medical research is publicly available
through online medical journals, such as the US
5.2. Second order impacts
National Library of Medicine’s MEDLINE.
and opportunities
However, the vast amount of information
According to a positive assessment, the on-
online can often be difficult to navigate and
going use and application of ICT presents
sort, and in many cases no systems to guarantee
numerous opportunities for society: improved
accuracy or lack of bias are in place. In the con-
work-life balance, greater access to information
text of healthcare, misinformation can be par-
and better services. But the full realisation of
ticularly dangerous. A public system or system of
the second order potential of ICT is still some-
third party verification may alleviate this prob-
way off. Barriers such as lack of access, inade- 38 Damian Tambini, IPPR/-
lem, but healthcare professionals disagree over Citizens Online, “Universal
quate security and low levels of trust stand in Internet Access”, Novem-
the extent to which self-diagnosis and treatment ber 2000
the way of the majority benefiting from these
should be encouraged. The potential for serious
opportunities. 39 http://www.nhsdirect.
oversight or misdiagnosis is all too apparent. nhs.uk/
x
x 267
x
ii. Access to government information there are concerns that regulation of the Inter-
net will undermine the medium’s strengths of
The eEurope Action Plan 40 aims to create a
freedom and flexibility. Furthermore, it is as yet
socially inclusive knowledge economy in Eu-
unclear where responsibility for content on the
rope. It set 2002 as the target date for all
Web lies, as the recent controversy in France
government information to be available online,
over the sale of Nazi memorabilia showed.
on the basis that easy access to public service
information can play a significant role in pro- Business has taken an active stance in re-
moting social inclusion. sponse to abuse of the Internet. Some Internet
service providers have restricted the type of
Online government information can play a
content which can be accessed through their
broader role in increasing government transpar-
search engines.
ency and accountability towards its citizens.
This is potentially significant in boosting 5. 2. 3. Access to better services
government legitimacy at a time when voter
i. Health
turn-out in elections is decreasing.
Surgeons directing operations via remote
However, those most in danger of social
online access may make the headlines, but the
exclusion, such as the elderly or unemployed,
range of possibilities for using ICT to improve
are also those least likely to have access to the
healthcare services is much broader. Fully
Internet. This is not adequately mitigated by
searchable online medical records, Web-linked
the provision of public access terminals. The
health call centres, online patient monitoring
success of “E-government” is dependent on par-
and remote consultations could provide patients
ticipation by citizens and at present only around
with a better, more efficient healthcare system.
50 % of Internet users in the EU have accessed
At the same time, online monitoring and con-
government information online. 41
sultation may improve quality of life if patients
5. 2. 2. Security challenges can be treated at home rather than in hospital.
The ability of ICT to overcome distance means
Trust must underpin all transactions – finan-
40 For more information that E-health services offer specialist healthcare
please see EITO 2002, Part cial and social – if the Internet is to operate ef-
Two: “E-government and
to those in remote locations, as well as to ex-
ficiently and bring benefits to society. However,
the business environment” cluded groups such as prisoners.
as a recent survey suggests, E-commerce is
41 Benchmarking Report
following-up the “Strate- being stifled by concern over Internet security. 42 The barriers to rolling out ICT in healthcare
gies for Jobs in the With significant amounts of personal informa- beyond individual initiatives are significant. As
Information Society”,
Commission Staff Working tion entered online, including financial informa- with so many applications of ICT, telemedicine
Document, February 2001
tion, privacy and security have become a pri- depends on inclusive access to high bandwidth,
42 Survey commissioned by ority. reliability and security. 43
Confederation of British
Industry, in Financial
Times, 31 st August 2001 The Internet is also the perfect tool for
43 “E-Life or E-death?
criminal groups such as child pornographers
A White Paper on the and terrorists, to organise globally. There is
Social Implications of
Cyber Medicine”, Peter clearly a conflict between protecting the privacy
James and Peter Hopkin- and security of legitimate users of the Internet,
son, Sustain IT, August
2000 and regulating the Internet to prevent abuse:
268
At the same time, online public services are

Online healthcare around the world more easily accessible. In Singapore a single
Australia is the current world leader in online portal offers access to all services from the
healthcare. It has developed centralised data- cradle to the grave. In Europe, fully online serv-
bases of medical records, online health infor- ices have been slow to develop, with online in-
mation and support, and its Hospitals With- teraction largely confined to tax and cultural
out Walls project aims to find ways of treating services. 45 There is a need to develop govern-
and monitoring patients at home. ment sites organised in a way which responds to
The US is pioneering several telemedicine the requirements of citizens and business rather
projects, such as a telehospice project in Kan- than following administrative structures. In
sas which uses phone lines and set-top boxes doing so, government will be able to increase
to provide care and support to patients. legitimacy amongst its citizens.
The UK government has developed the NHS 5. 2. 4. E-commerce
Direct Website which integrates online infor-
mation and a health call centre. B2C online retail could help to improve
work-life balance by freeing up some of the
ii. Education time currently spent by consumers on retail ac-
The growing body of education and learning tivities. However, it is still far from certain that
resources available online offers flexible, indivi- E-commerce will be adopted en masse by Euro-
dually-tailored learning solutions which facili- pean consumers.
tate lifelong learning. Some of the world’s lead- Again, the opportunities of E-commerce de-
ing universities, such as MIT, now offer courses pend on widespread connectivity. Additionally
and course content online, free of charge. In the in this case, participation often relies on posses-
UK, a national E-University will from 2002 sion of a credit or debit card, which excludes a
offer 84 courses from some of the country’s significant proportion of Europe’s population.
leading institutions. Lifelong learning has be- In view of this, alternative means of online pay-
come a key European policy goal in developing ment are being developed. Electronic purses
the new “knowledge-based economy”, but again and smart cards for example use software which
if this is to be delivered via the Internet, the stores currency and can be built into a mobile
crucial question of universal connectivity must phone, PC or digital television.
be answered.
For those who are unable to take advantage
iii. Government of online services, the closure of high-street
The impact of ICT on government services 44 branches only serves to further exclude them
is two-fold. Behind the scenes, information from opportunities for full participation in so- 44 For more information
technology allows for significant levels of inte- ciety. please see EITO 2002, Part
Two: “E-government and
gration and co-ordination in administration, the business environment”
contributing to greater efficiency in the delivery 45 Benchmarking Report

following-up the “Strate-
of public services. This is particularly the case gies for Jobs in the
where the services required are split across Information Society”,
government departments. Document, February 2001
x
x 269
x
Figure 5
Proportion of employed %
people engaging
20
in telework 47
18 17.4
16
14
12.4
12
10.1 10.4
10 9.6
6 5.6 5.1
4.6
3.7 3.6 4.0
4 3.3 3.3 3.1
2.4
2
0
m
ce
ly
en
K
ga
nd
tri
an
ec
ur
ar
an
an
ai
U
Ita
iu
an
ed
rtu
Sp
m
re
bo
us
rla
m
el
nl
lg
Fr
Sw
en
Ir
er
Fi
Be
Po
m
he
G
D
xe
et
Lu
N
5. 2. 5. Telework On the negative side, rather than being li-
berating, the removal of the workplace commu-
At present 5.6 % of workers in the EU tele-
nity can undermine employee morale. The crea-
work. 46 Denmark leads the way with 17.4 % of
tion of telecottages and telecentres may respond
workers regularly or occasionally teleworking
to the need for social interaction. One company
(see Figure 5). Teleworking among managers is
has created seven telecentres in the Parisian
more common: 42.2 % of managers in Denmark
46 Benchmarking Report suburbs close to where employees live, so that
following-up the “Strate- and 26.7 % in the UK telework.
gies for Jobs in the social contact can be maintained without entire-
Information Society”, ly compromising flexibility. 48
There are numerous social benefits of tele-
Document, February 2001 work, for example:
Pay and working conditions can be worse for
47 Eurobarometer survey on – less time spent travelling to work; some teleworkers: Europe has over one million
e-work, November 2000.
Telework is defined as – greater flexibility with working hours; people (growing to 2.5 million by 2006) 49 doing
“carrying out all or part of
their work away from their – more time spent with family; repetitive teleworking jobs such as data-entry,
normal places of activity,
usually from home, using
copy-typing and telesales, on less pay than their
– inclusion in the workforce of hitherto ex-
ICT”. non-teleworking counterparts. Denmark and
cluded groups such as the physically dis-
48 e-work 2001, Information Ireland are currently the only two countries in
Society Technologies, abled, carers and parents with young chil-
Europe with codes of practice covering tele-
September 2001 dren;
workers. The European Trades Union Congress
49 e-work 2001, Information – improved opportunities for work in remote
Society Technologies,
September 2001 areas.
270
and the employers’ organisation UNICE (Union – Motivated protestors have attacked compa-
of Industrial and Employers Confederations of nies through their Websites using hacker
Europe) are negotiating an agreement to cover skills, bringing down computer systems and
health and safety, work organisation and union Websites.
protection for teleworkers. – Malcontents send E-mails in large numbers
5. 2. 6. New communities online to protest against unpopular policies. When
George Bush withdrew the US from the
The Internet was created as a tool to allow Kyoto Protocol, protest E-mails from envi-
university researchers to collaborate across geo- ronmental campaigners worldwide brought
graphical barriers. Its disregard for physical dis- down the White House Website.
tance has resulted in the formation of new com-
– Street protests, for example at the WTO
munities online. Some of the earliest online
meeting in Seattle, are often organised over
communities were formed as support and infor-
the Internet.
mation groups by mutual sufferers of illness
and their carers, as a complement to conventio-
5.3. Third order impacts
nal support structures. Other examples are the
and opportunities
anti-globalisation movement, the community of
Star Trek fans or the community of program- Isolating the aggregated effects of large scale
mers who form the Open Source movement. ICT use on society and social equity, from equi-
valent effects on the economy or the environ-
These online communities tend to bolster
ment, presents many challenges. Equally, so-
offline community rather than replace it. Geo-
ciety is effected by a vast range of other factors,
graphic communities are not being replaced by
and at this level it is artificial to separate these
“E-tribes” as was once thought possible.
from those of ICT use. However, there follow a
5. 2.7. Popular protest online number of opportunities for building social ca-
pital, to which widespread adoption of ICT has
In addition to enabling the formation of
contributed.
new, global communities, the Internet also gives
easy access to an unprecedented amount of in- 5. 3.1. Cultural homogeneity
formation about companies and governments. or cultural diversity?
This information can then be used in political
Despite the creation of software and inter-
campaigns online and offline.
faces that support languages with non-Roman
– One example of online action is the emerg- scripts such as Arabic and Japanese, the majori-
ence of spoof company Websites such as ty of information on the Internet is in English
mcspotlight.com and shameonnike.com. and originates from the US. ICT is accelerating
a trend which is a symptom of globalisation
more widely. However, the detrimental impact
on linguistic and cultural diversity is as yet un-
x
x 271
x
known. If English comes to dominate almost 5. 3. 3. Building civic culture
exclusively, the potential for non-English speak-
The Internet may offer a way of channelling
ers to be marginalised in the knowledge econ-
popular interest in political issues back into the
omy would be a serious concern.
formal political process. Online voting is one
Counter trends exist though. There are op- means. In the Kalix municipality in Sweden, the
portunities for new types of cultural diversity in local authority sought the opinions of local
cyberspace. What is more, the Internet can be residents via an online consultation prior to
used to bolster cultures and communities under drawing up plans for redeveloping the town
pressure. For example, Cornish is a language centre. 51
spoken by just a few thousand people world-
The Internet can allow citizens to engage di-
wide, but the online community of Cornish
rectly in the political process. Online inputs into
speakers has a daily global newspaper, in the
formal decision-making processes, online con-
form of Nowodhow Kernow. 50
sultations and online advocacy can increase par-
5. 3. 2. Building local communities ticipation. Similarly, ICT gives political parties a
means of reaching new audiences faster and
The widespread adoption of ICT into society
with fewer resources than with door-to-door
may make it possible to rebuild strong local
canvassing. Mass communications are essential
communities, where these have been eroded.
for building coalitions of support in an age
E-commerce and telework both may reduce car
when party affiliations are weak and swing
travel and provide an incentive for people to
voters make the difference. However, if ICT is
spend more time with their families and in their
to reinvigorate the democratic process, access
local geographical community. The incentive
itself must first be democratised.
will be enhanced if local amenities such as post
offices or corner shops act as E-commerce deli-
very points. Local businesses would also bene-
fit.
Research has shown that interaction over
the Internet actually encourages interaction off-
50 http://www.geocities.com/ line. If Web traffic can be directed into locali-
cornishnews/ ties, this could encourage local face-to-face in-
51 http://www.votia.com teraction and revitalise communities.
272
6. Economic sustainability and ICT

Table 7 summarises the economic impacts and opportunities created by ICT.
Table 7
First order effects Second order effects Third order effects Economic
Growth of the ICT market Application of ICT within ICT and the “new economy”: sustainability and ICT
businesses a new paradigm of growth?
– Size of sector and numbers – ICT creates opportunities for – Long-term and fundamental
employed new efficiencies in business changes to the global economy
may create a more beneficial
environment for the goals of
sustainable development
Ongoing investment in ICT New opportunities for SMEs Exclusion or inclusion?

– Investment in technology within – New markets and more efficient – The globalised economy may
companies continues to grow production for SMEs reinforce uneven patterns
of wealth
– ICT may provide new solutions
to ensure economic benefits
are shared
Ongoing investment in Financial markets

ICT research and development
– Resources continue to be – ICT enables new financial
ploughed into developing markets, creating growth
new technologies – ICT enables wider participation
in financial markets
New types of company The relationship between business

and the market
– Changing the structure of – Consumers are empowered
the economy – Companies are encouraged
to act ethically
Boom and bust

– Market volatility
x
x 273
x
Figure 6
ICT growth rates in
Western Europe in % 52 20
18 2000/99 2002/01
16
14
12
10
8
4
2
0
a
b.
ce
ly
ay
en
nd
K
ga
nd
tri
an
ec
ar
an
an
ai
U
Ita
em
an
ed
la
rtu
Sp
m
re
us
rla
m
nl
el
or
er
Fr
Sw
ux
en
Ir
er
A
Fi
Po
N
he
itz
./L
G
D
et
Sw
N
lg
Be
6.1. What is 6.2. First order impacts

economic sustainability? and opportunities
Economic sustainability could be taken to 6. 2.1. Growth of the ICT market
mean the conditions whereby stable economic
ICT has an increasingly significant role in
growth can be sustained long term. This is cer-
the European economy, making the social and
tainly important, but is only part of the picture.
environmental impacts and opportunities out-
The aims of sustainable development are to
lined in this section all the more important.
create growth that is socially and environ-
mentally beneficial. It should balance out social The ICT market is expanding across Europe
inequalities and create opportunities for all, and looks set to continue in the future despite
while not depleting the Earth’s resources any the slowdown in late 2000–2001. Year-on-year
further. Instead growth should invest in the re- growth of the ICT market in Western Europe
building of ecosystems to provide for the long- was 13 % from 1999–2000 and is expected to be
term prosperity of humanity as a whole. 5 % from 2001–2002, 53 well above average GDP
growth in the same period (see Figure 6).
Economic growth in the context of sustain-
ability is therefore best understood as socially This growth is reflected in the increasing
and environmentally sustainable economic number of people employed in the sector. In
52 EITO 2002, Table 11,
Statistical outlook growth: growth that is measured by its contri- Finland for example, ICT employment in-
bution to improvement in human welfare. creased by an average of 8 % per annum be-
53 EITO 2002, Table 12,
Statistical outlook tween 1995 and 1999 and stood at 1,292,000 in
274
Figure 7
ICT expenditure
12 as a percentage
1998 2001 of GDP 54
10
0
a
b.
ce
ly
ay
en
nd
K
ga
nd
tri
an
ec
ar
an
an
ai
U
Ita
em
an
ed
la
rtu
Sp
m
re
us
rla
m
nl
el
or
er
Fr
Sw
ux
en
Ir
er
A
Fi
Po
N
he
itz
./L
G
D
et
Sw
N
lg
Be
1999. Employment growth in OECD countries Figure 7 illustrates that the share of GDP
was on average 12 % in the ICT sector in the spent on ICT increased significantly since 1998
four-year period from 1995 to 1999. 55 Employ- in most countries.
ment growth exists not only in the first order
6. 2. 3. Ongoing investment in ICT
design, manufacture and disposal of ICT equip-
research and development
ment, but also in its application through ICT
service providers, software manufacturers and ICT companies and research institutions
more widely in economies as a whole through continue to plough large amounts of capital into
the stimulation of economic growth. their research and development budgets. In the
period 1990–1997 applications to the European
6. 2. 2. Ongoing investment in ICT
Patent Office for ICT patents increased by 8 %
The increasing importance of ICT in the per annum, compared with 5.7 % per annum for
economy is demonstrated by the continued all patents. 56 The ongoing development of new
heavy investment into ICT made by business, technologies has direct benefits for the compa- 54 EITO 2002, Table 88,
finance, government and every type of institu- nies responsible, but also has wider benefits for Statistical outlook
tion. ICT capability is regarded as an essential the economy and society as a whole. Studies 55 Groningen Growth and
prerequisite for operation in the modern econ- suggest that the social return of research and Development Centre,
http://www.eco.rug.nl/
omy and society. Continued investment into development is at least twice as big as the pri- ggdc/ictdatabase.html
ICT equipment drives the move to a more ICT vate return due to spillover benefits to other 56 OECD STI scoreboard
dependent economy, in which sustainable devel- firms. 57 57 Economist, 23 September
opment issues can better be addressed. 2000, p. 43
x
x 275
x
Figure 8
Boom and bust
in the ICT sector –
Nasdaq Europe Composite Index
Nasdaq Europe 2,500
Composite Index 58
2,300
2,100
1,900
1,700
1,500
1,300
Value
1,100
900
700
500
300
100
1998 1999 2000 2001
Close price
6. 2.4. New types of company – Specialised software requirements are also

outsourced. Instead of using expensive and
The rapid development of ICT has led to the
quickly outmoded custom-built software so-
creation of a range of new types of company to
lutions, many companies employ Applica-
produce the infrastructure and provide the nec-
tion Service Providers (ASPs) to modify and
essary support services:
implement off-the-shelf solutions for Supply
– Completely new markets have developed, Chain Management or manufacturing pro-
such as the mobile telecommunications or cesses.
the optical fibre market.
This has inevitably led to diversification in
– Certain characteristics of ICT implementa-
economies and new opportunities for employ-
tion and management – for example the ten-
ment.
dency for new waves of functionality to ap-
pear with relative speed, or the specialist 6. 2. 5. Boom and bust in the ICT sector
knowledge required for programming – have
The dramatic inflation and collapse of the
led many companies, especially SMEs, to
“dot.com bubble” has attracted much media at-
outsource their ICT needs. This has encour-
tention. Much larger organisations in the ICT
aged the development of specialist support
sector than dot.com start-ups have been af-
agencies looking after core business activi-
fected by the downturn in technology stocks.
ties such as Knowledge Management, Web-
Figure 8 shows how ICT stocks in Europe have
site design and hosting or Customer Rela-
changed in value from 1998–2001. The Nasdaq
58 Nasdaq Europe: tionship Management.
http://www.nasdaqeurope.
Europe index includes a wide range of ICT
com/ [with permission] companies of different type and size.
276
Clearly there are a range of factors that have 6. 3. 2. New opportunities for SMEs
contributed to the boom and bust of technology
Larger companies have had access to global
stocks. In the context of sustainable devel-
markets and economies of scale for a long time
opment, it is worth asking whether the nature
but these opportunities are now becoming avail-
of ICT in the economy, requiring rapid develop-
able to smaller companies through the applica-
ment and deployment, encourages market vola-
tion of ICT.
tility.
– SMEs have access to new consumer markets
6.3. Second order impacts through the development of B2C E-tailing
and opportunities sites. B2B E-commerce provides greater ex-
posure to business with large organisations
6. 3.1. Application of ICT using E-procurement policies or whole mar-
within businesses kets where E-marketplaces operate. This can
ICT has had a profound effect on the effi- provide small companies with limited re-
ciency of internal business systems. To take one sources access to global markets at very low
example, ICT has had particularly beneficial ef- cost.
fects on businesses’ inventory management, – A more networked economy creates greater
with implications for economic stability. ICT economic diversity. SMEs are ideally placed
has increased the quality and speed of informa- to take advantage of developing market
tion that companies receive, for example niche products and services.
through bar-coding and real-time transmission – SMEs have hitherto lacked the ability to ex-
of sales data. Computer Aided Design has also ploit efficiencies through large scale produc-
meant that set-up and production lead times tion. However, ICT control systems are as
have been reduced. Companies are able to oper- applicable to small companies as they are to
ate with lower inventories and suppliers can large and can allow SMEs to compete on
produce more to demand, reducing risk and ul- price.
timately volatility. The inventories of durable
consumer goods for example fell relative to The boost to SMEs has the potential to
sales by approximately 20 % between 1988 and stimulate local economies and foster regional
2000. development, contributing to a more equitable
distribution of wealth and opportunities, a key
The application of Web-managed control element of a more sustainable society and
software can result in: economy.
– faster production lines and faster turnover;
6. 3. 3. Financial markets
– better logistics, cost and quality control;
The application of ICT has been closely
– more information and better communication
linked to the rapid expansion of the world’s
throughout a business;
financial markets in the past ten years.
– substantial elimination of waste.
– ICT is used to communicate the data on
The economic savings thus created also re- which the operation of financial markets is
present in many cases environmental savings. based. With the development of much faster
and more powerful ICT, financial markets
around the world have been able to grow
and develop links. Because these financial
x
x 277
x
markets deal exclusively in intangibles, there 6. 3.4. The relationship between
is no limit to the speed and volume of business and the market
financial transactions.
ICT has changed the way that business
– New financial sectors such as futures, deriv- connects to its markets in several ways. For ex-
atives or spread betting have been catalysed ample, ICT has stimulated the development of
by ICT as it enables highly complex mathe- new business models such as E-marketplaces
matical calculations and practically instanta- and has enabled individually-tailored marketing
neous transfer of data. strategies and product supply. Of particular
– ICT has opened up financial markets to importance for sustainable development, ICT
wider participation. Through online shares has provided the means for greater empower-
trading sites, financial information is dis- ment of consumers, and has gone some way to
seminated to a new global community of enabling greater corporate accountability.
individual shares traders.
i. Empowerment of consumers
The inclusion of large numbers of individu-
Increased product information online allows
al investors in the financial markets is at first
consumers to make informed purchasing deci-
glance a positive democratising development. It
sions more easily. The growing body of ethical
may however lead to an increase in market vol-
and green consumers is better placed online to
atility, as individual investors operate according
make well informed purchasing decisions. For
to different rules from those of corporate inves-
example, www.mtprog.com rates household ap-
tors and their vast electronic markets.
pliances based on environmental criteria. At the
The success of the financial markets gener- same time, E-commerce is better suited to
ates global wealth which can be channelled to niche markets as niche consumer groups are
address social and environmental issues. How- more easily targeted online than offline through
ever, it has been argued by some observers that expensive marketing campaigns.
the market is difficult to predict and regulate
ii. Corporate accountability
and creates patterns of wealth that are not glo-
bally inclusive. Corporate information is now more widely
accessible than ever before, over the Internet.
In the overwhelming majority of cases, in-
This enables consumers – indeed all stakehold-
vestment decisions are made taking only eco-
ers – to scrutinise companies’ social and envi-
nomic factors into consideration. If social and
ronmental records, and then take action if they
environmental performance of companies can
feel a company is operating unethically. For
be given a market value, the financial markets
example, the Internet was key to organising the
have great potential to contribute to sustainable
popular movement against use of child labour
development.
in supply chains.
Furthermore, it has been argued that econo-
mic relationships online, in an environment
where face-to-face contact is rare, place a great-
er emphasis on trust. If a company can be seen
as socially responsible, it is also seen as trust-
worthy, and so attracts business, investment and
new recruits.
278
In these ways, the increasing use of the In- Whether these changes constitute a “new
ternet has been one factor stimulating compa- economy”, a paradigm shift in the fundamentals
nies to develop strategies for Corporate Social of economics, or whether they are the culmina-
Responsibility (CSR). Many companies have tion of long-term trends, is a matter for de-
CSR departments and are committed to report- bate. 60 More importantly, the modern economy
ing on social and environmental as well as that is emerging, with ICT at its core, may be
economic performance. beneficial to the goals of sustainable develop-
ment.
“The Cluetrain Manifesto” examines how
the Internet has been central to the restructur- Central to this claim is the possibility that
ing of business. Its authors argue that the Inter- ICT contributes to generally higher rates of pro-
net has been responsible for changing the bal- ductivity growth. In the years 1972–1995, for ex-
ance of power between companies and consum- ample, productivity in the US economy grew by
ers, in favour of the latter. According to them, 1.4 % per annum. This figure increased to 2.5 %
the Internet makes new relationships possible, per annum between 1995 and 2000, at a time
“humanises the corporation, emphasises its in- when growth in ICT use was evident.
teractions with other stakeholders and so rein-
The IMF has identified this increase in US
forces its social and environmental responsi-
labour productivity with ICT-related capital
bilities”. 59
deepening and ICT-related efficiencies. 61 The
US Department of Commerce calculated that in
6.4. Third order impacts
1997 and 1998, when the US economy grew by
and opportunities
8 %, between 27 % and 28 % of that growth was
6.4.1. ICT and the “new economy”: attributable to the growth of ICT. Romano
a new paradigm of growth? Prodi, President of the European Commission,
said of US growth that it “leaves no doubt as to
Undoubtedly, today’s developed-world econ-
the potential benefits of the new economy in
omy has some different characteristics to that of
terms of growth, employment and low infla-
twenty years ago. For example, production of
tion”. 62 59 Rick Levine et al., “The
material goods has given way to a focus on serv- Cluetrain Manifesto: The
ices. Thus, the number of service industry jobs However, dissenting voices exist. A recent end of business as usual”,
2000
in France as a proportion of total employment report suggested that US growth in the period
60 See for example “Is there a
rose steadily over the past century, from approx- 1995–2000 was concentrated in just a few sec- new economy? First report
imately 25 % in 1900 to over 70 % in 1990. Glo- tors of the economy, and not across all sectors on the OECD growth
project”, OECD 2000
balisation is also a feature of the modern econ- as would have been expected had ICT been the
61 IMF, “The Information
omy, reflected in the increasing number and in- driving force for growth. 63 technology Revolution”,
fluence of multinational enterprises and global 2001 – see http://www.
Furthermore, similar patterns of productivi- imf.org/external/pubs/ft/
trade bodies. weo/2001/02/
ty growth have not as yet been replicated in
The increasing penetration of ICT has a very many other developed economies, such as Fin- 62 Conference report from
“The e-economy in
significant role to play in these changes to the land or Sweden where ICT use is as high or Europe: its potential
impact on EU enterprises
modern economy, enabling services to be de- higher than in the USA. Nor is there clear evi- and policies”, 2001
livered efficiently and providing the means to dence connecting ICT use and productivity 63 Financial Times,
bind the global economy together. growth in these countries. 17 October 2001
x
x 279
x
If ICT does indeed drive productivity 7. Evaluation
growth, the increasing penetration of ICT sys-
This paper has reviewed the impacts and op-
tems and applications across all aspects of
portunities of ICT on the three spheres of sus-
human endeavour may provide for greater pros-
tainability: environmental, social and economic.
perity and stability in the economy of the
In evaluating the overall picture, it is necessary
future. It may even be possible for economic
to draw these three spheres together and iden-
growth to finally be de-coupled from growth in
tify where the balance of positive and negative
consumption and resource use, as explored ear-
effects lies.
lier, 64 creating a context in which the goals of
sustainable development can more easily be Figure 9 summarises the balance of positive
achieved. and negative impacts and opportunities of ICT
on sustainable development, as presented in
6.4. 2. Exclusion or inclusion?
this chapter.
There are signs that the embedding of ICT
in the new economy does not in itself address 7.1. First order impacts
differences between the rich and poor. The and opportunities
richest 20 % of the world’s population still ac-
The impetus for the development of ICT
counts for 86 % of GNP, 74 % of telephone lines
has been primarily economic, and so the imme-
and 93 % of the world’s usage of the Internet.
diate effects of ICT on economic sustainability
Some economists argue that the global are expected to be positive (c in Figure 9). This
economy, driven by the financial markets, seeks is the case, despite the current depressed state
value and bypasses areas where little profit can of the ICT sector. Indeed, it has been argued
be made, creating a substantial minority of that the bubble that burst in 2000 was a finan-
economically excluded people living in devel- cial bubble and not a technology bubble: tech-
oping countries and parts of developed coun- nology stocks were overvalued, but confidence
tries alike. in the technology itself remains strong.
It has been shown that uneven distribution The immediate effects on the environment
of ICT around the world leads to the creation of are quite the opposite (a in Figure 9). Production
a digital divide. However, the rapid develop- of ICT equipment does not place the same level
ment of ICT may present the opportunity for of demands on natural resources, nor is it as
countries currently with poor ICT infrastructure polluting, as many other industries, but none-
to “leapfrog” old economy solutions and pro- theless the manufacture, operation and disposal
ceed directly to those of the new economy. For of ICT equipment all have negative environ-
example, Rwanda is looking to roll out a mobile mental impacts. Although efforts are being
telecommunications network without ever hav- made to mitigate these effects from within the
ing invested significantly in fixed line. Similarly, ICT industry, action is also required at a policy
emerging markets in the east of Europe such as level:
Poland will soon have a much higher penetra-
tion of mobile phones than of fixed-line
phones. There are also many attempts to use
fixed-line Internet access in developing and
emerging economies to distribute economic
64 See section 4.3. benefits more evenly.
280
Figure 9
Evaluating the effects
First order Second order Third order of ICT on sustainable
development
Environmental a n Positive and negative

Mostly negative d
Convergence
Mostly positive As yet
unknown
n
Social Positive and negative n n
e
n
g
b
Mostly positive
More positive than
negative
Economic c n
f
– to attain greater environmental efficiency in 7.2. Second order impacts

production; and opportunities
– to produce greater environmental efficiency As Figure 9 shows, there is greater complexi-
of the equipment itself and ty when considering the effects of the applica-
– to encourage “design for the environment” tion of ICT on the sustainable development
making equipment suitable for recovery and agenda.
recycling schemes.
Again, as might be expected, ICT applica-
Socially, the effects of ICT manufacture and tions present opportunities for economic devel-
operation are more balanced (b in Figure 9). The opment (f in Figure 9). Furthermore, there are
creation of jobs is of social benefit, just as ac- signs that ICT, in particular through the use of
cess to empowering technologies is of benefit to the Internet, empowers consumers with greater
the sections of society that have that privilege. choice.
However, patterns of digital exclusion threaten
to reinforce patterns of social exclusion, pre-
senting a challenge to policy makers, NGOs and
business.
x
x 281
x
ICT co-ordinated financial markets may cre- 7.3. Third order impacts
ate market volatility and exacerbate exclusion, and opportunities
but this may be changing with investors and
The aggregated effects of widespread use of
fund managers beginning to respond to con-
ICT throughout the economy and society are as
sumer concerns. Indeed, the markets may be-
yet ambiguous (g in Figure 9). Long-term envi-
come a powerful force for sustainable devel-
ronmental effects are dependent on the type of
opment in the future by directing increasing
economy that results from ICT penetration. A
volumes of capital into companies that can
“lightweight” economy where intangible goods
demonstrate a commitment to ethical issues
are valued above material production, where
and a practical approach to social and environ-
economic growth is de-coupled from growth in
mental risk management.
energy consumption and pollution, may be
Telematics is a promising technology for re- emerging. This is the type of economy that
ducing traffic levels (d in Figure 9). ICT stream- would benefit the aims of sustainable develop-
lines business systems, increasing efficiency and ment, but it is far from clear whether the econ-
therefore decreasing the environmental foot- omy of Europe is developing in this direction.
print of business. E-commerce and telework
Similarly, it remains to be seen whether ICT
may or may not cause a decrease in the use of
penetration produces cultural homogeneity or
transport and a consequent decrease in vehicle
diversity, whether social equity will be boosted
emissions, depending on how consumer habits
or communities eroded. The third order effects
are effected and how support systems are struc-
on society, as with the economy and the envi-
tured. Many of the effects of ICT application on
ronment, will be unveiled in the long term.
the environment remain in the balance, and it is
Even then, directly attributing macro-level
here that policy initiatives are perhaps most
economic social and environmental develop-
needed to ensure that they are swung in the
ments to the increasing use of ICT, rather than
right direction for sustainability.
to other trends such as the rise of the service
ICT applications, in particular the Internet, economy or changes in cultural attitudes, will
provide access to information and services and be extremely complex.
create the possibility for greater community in-
volvement for hitherto excluded groups (e in 7.4. Summary
Figure 9). Workers may benefit from an im-
The past twenty years or so have seen ICT
proved work-life balance. The Internet may
become ever more central to the world’s econ-
have a generally humanising effect on people’s
omy and culture. This technological revolution
lives. However, the social benefits of ICT at this
is of great significance for several reasons:
level are dependent on universal connectivity,
widespread “IT literacy” and the relevant con- – The speed with which ICT has penetrated
tent being developed to serve communities and society is unprecedented by any other tech-
individuals. There is a very significant role for nology.
policy makers to play in creating such an envi- – ICT has an enormous range of applications
ronment. and can be profoundly enabling.
– The creation of ICT requires less resource
than the creation of many other enabling
technologies, such as the internal combus-
tion engine, and has very low marginal
costs.
282
In some cases ICT is of direct benefit to the Although the deployment of ICT through
goals of sustainable development; in others ICT the economy and society is still at an early
is directly or indirectly detrimental to social and stage, now is the right time for concerted policy
environmental concerns. In most cases, how- action. In this way, it may be possible to intro-
ever, the effects will only become clear in the duce sustainability into the ICT sector from the
medium-to-long term. outset, rather than having to retro-fit social and
environmental concerns in response to stake-
The goals of sustainable development are to
holder pressure.
enable all people to realise their potential and
improve their quality of life in ways that simul- Three broad principles should govern any
taneously protect and enhance the Earth’s life- attempts to maximise the synergies between
support systems. As these goals become sustainable development and ICT:
increasingly accepted, more and more facets of – Institutional innovation must be as radical
human activity will be analysed in terms of their as technological innovation in order to keep
effects on sustainable development. up with the pace of change.
In the case of ICT, examples of this process – Business, government and non-govern-
taking place have already been observed. How- mental organisations (NGOs) must work in
ever, this section has shown that despite all the partnership for action to be effective.
potential, there is no overwhelming dynamic in – Successful policy will depend on a longer
the penetration of ICT that automatically pro- term view, beyond the ups and downs of
pels the globe towards a sustainable state. ICT stocks prices.
Rather, ICT presents an array of opportunities
to be taken: ICT is a tool that can be used to 8.1. A selection of policy options
steer society in a beneficial direction.
There is a range of policy tools available to
The possibilities of ICT should perhaps be government and business in attempting to in-
seen as a challenge for those who wish to im- fluence the development of ICTs and their im-
prove the quality of life for all. The response of pacts. Maximising the potential of ICTs to pro-
policy makers in government, business and in mote sustainable development will depend on
civil society is therefore crucial. how these policy tools are implemented and the
degree of co-ordination between different levels
8. Policies and targets of government, business and other policy actors
The evaluation of the economic, environ- such as NGOs.
mental and social impacts of ICT highlights a Table 8 sets out a selection of policy tools
series of critical junctures at which action on which could be used, together with a brief ex-
the part of business and government is neces- planation of how each tool functions and an
sary if some of the more negative impacts of indication of where each can be most effective.
ICT are to be avoided and the positive opportu- In addition, it offers specific examples for each
nities are to be exploited fully. Current trends policy tool within the framework of ICTs and
indicate that there is no room for complacency sustainable development.
about the inevitability of positive outcomes.
x
x 283
Table 8
x
Policy options
Policy tool Explanation Primary focus Policy examples

Frameworks A broad statement of The opportunity to affect devel- The EU could take a lead in creating an integrat-
goals and strategy which opment at the first, second and ed framework for eEurope and sustainable devel-
establishes the direction third orders by changing opment. This would create a favourable environ-
for more specific policy strategic lines of thinking and ment for new policy initiatives and legislation to
measures. creating a fertile environment promote the positive impact of ICTs on sustain-
for new policy initiatives. able development.
Market-based Market-based policies, Market-based policies may Tax exemptions could be offered to employers
policies such as fiscal instruments, create incentives to reduce purchasing computers for use by employees at
offer a way of promoting negative first and second order home. This would promote digital inclusion as
social and environmental environmental and social well as creating opportunities for home working
concerns by reallocating impacts, whilst promoting a to reduce commuting and office space.
the burden of taxation. dynamic, competitive ICT Increased taxation on high-emission fuels could
At the same time, they sector in Europe. shift usage towards renewables and stimulate
promote innovation and innovation in new fuel technologies. This could
stimulate new markets. reduce the home delivery impacts of E-commerce.
Regulation Public authorities mandate Regulation can reduce negative The EU draft directive on universal access could
the social and environ- first order environmental and be extended to broadband by 2015 to promote
mental standards to be social impacts. However, regu- digital inclusion.
achieved, or the technolo- lation offers less flexibility Member State governments could increase fines
gies to be used, by firms. than market-based incentives for heavy-metal contamination in order to en-
and so market-based incentives courage industry to replace toxic substances in
should be favoured where production.
possible.
Voluntary Firms make a commitment Voluntary initiatives could ICT companies could commit to exceeding the
industry to improve their perfor- reduce first, second and third requirements of the WEEE directive for recycling
initiatives mance beyond strict legal order impacts. However, the electronic waste in order to reduce the first order
stipulations. This is com- overall environmental and environmental impacts of ICT equipment.
monly referred to as social impact depends on The ICT industry could put forward overall
corporate social responsi- industry-wide buy-in. targets for “factor four” efficiency gains as part of
bility. an industry-wide strategy for reducing its environ-
mental impact.
Monitoring and Firms commit to transpar- Over time, benchmarking may ICT companies could commit to triple bottom
reporting ency and accountability in promote sustainable develop- line reporting under the Global Reporting Initia-
their activities. This allows ment across first, second and tive.The ICT industry could co-operate with
benchmarking across in- third orders. NGOs and policymakers to develop sector-specific
dustry, which can improve guidelines for triple bottom line reporting.
long-term performance.
Government- Information and financial Government-supported initia- Government could finance and support social
supported support is offered by tives could improve knowledge partnerships to tackle the digital divide.
initiatives different public authorities on sustainability issues among Local and regional governments could provide
to promote sustainable business and create incentives financial support for online local communities,
development. for improved environmental particularly in rural and disadvantaged commu-
and social performance at the nities.
first and second orders.

European Information Technology Observatory (EITO) - The Impact of ICT On Sustainable Development

Încărcat de

Informații document

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

European Information Technology Observatory (EITO) - The Impact of ICT On Sustainable Development

Încărcat de

Drepturi de autor:

Formate disponibile

European Information Technology Observatory · E I T O 2002

The impact of ICT on sustainable development

First order Second order Third order

and the processes involved. application of ICT. large numbers of people

Environmental Section 4.1 Section 4.2 Section 4.3

Table 1 Social Section 5.1 Section 5.2 Section 5.3

4. Environmental sustainability and ICT

Operation of ICT equipment ICT in business systems De-coupling economic growth

Disposal of ICT equipment Virtualisation of material products Changing settlement patterns

Effects on product lifetimes

Distribution and manipulation of

Production phase Use phase Disposal phase

Greenhouse gases 0.19 tonnes 0.45 tonnes 0.022 tonnes

Table 3 Waste 36 kg 108 kg 21 kg

When it is considered that PC penetration in In 2000 the European Commission estimat-

4. 2.1. Increase and decrease However, once the corresponding increase

Material production Virtual production

France 3,881 6,287 4.3. Third order impacts

Spain 2,401 4,195

4. 3. 2. De-coupling economic growth The adoption of ICT at a local level pro-

Digital divide Security challenges Building local communities

Access to better services Building civic culture

New communities online

Popular protest online

Luxembourg 42,769 724 487

Ireland 25,918 478 447

Denmark 25,869 685 495

Belgium 25,443 502 314

Austria 225,089 472 514

Netherlands 24,215 606 435

Germany 23,742 588 286

Finland 23,096 552 651

France 22,897 579 364

Sweden 22,636 665 583

Italy 22,172 462 528

UK 22,093 575 463

Spain 18,079 418 312

Portugal 16,064 424 468

Greece 15,414 528 311

Czech Republic 13,018 371 189

Poland 8,450 263 102

work, member states have pursued various 5. 2.1. Access to information

At the same time, online public services are

contributing to greater efficiency in the delivery 45 Benchmarking Report

6. Economic sustainability and ICT

Ongoing investment in ICT New opportunities for SMEs Exclusion or inclusion?

Ongoing investment in Financial markets

New types of company The relationship between business

Boom and bust

6.1. What is 6.2. First order impacts

6. 2.4. New types of company – Specialised software requirements are also

Environmental a n Positive and negative

– to attain greater environmental efficiency in 7.2. Second order impacts

Policy tool Explanation Primary focus Policy examples

S-ar putea să vă placă și