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Information Communication Technology development and energy demand in African countries

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  • Kouton, Jeffrey

Abstract

This paper investigates the relationship between ICT development and energy demand in 28 African countries for the period covering 2000 to 2014. ICT development is measured by the number of individuals using Internet and by the mobile cellular subscriptions. The study uses a dynamic energy demand model and adopts the System Generalized Method of Moments with a panel causality test. The results suggest that ICT development has a positive significant effect on energy demand, implying that the African countries under study have not yet achieved energy efficiency gains through ICT development. Unidirectional causal relationships from internet usage to energy demand and from energy demand to mobile cellular subscriptions are found. We found a bidirectional causality between mobile cellular subscriptions and electricity demand. Our results support that Africa needs to take advantage of the digital economic and that there is a potential leverage effect of energy on the development of mobile industry in Africa. Moreover, mobile technology can help in delivering electricity services and meet energy demand. The findings point out that internet usage reduces the demand of energy from other types of energy such as heat and transportation.

Suggested Citation

  • Kouton, Jeffrey, 2019. "Information Communication Technology development and energy demand in African countries," Energy, Elsevier, vol. 189(C).
    • Handle: RePEc:eee:energy:v:189:y:2019:i:c:s0360544219318870
    DOI: 10.1016/j.energy.2019.116192
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    2. Lee, Chien-Chiang & Yuan, Zihao & Wang, Qiaoru, 2022. "How does information and communication technology affect energy security? International evidence," Energy Economics, Elsevier, vol. 109(C).
    3. Xiaohong Liu, 2023. "Impacts of Environmental Pollution and Digital Economy on the New Energy Industry," Sustainability, MDPI, vol. 15(12), pages 1-15, June.
    4. Wang, Jen Chun, 2022. "Understanding the energy consumption of information and communications equipment: A case study of schools in Taiwan," Energy, Elsevier, vol. 249(C).
    5. Zakia Batool & Sajjad Ali & Abdul Rehman, 2022. "Environmental Impact of ICT on Disaggregated Energy Consumption in China: A Threshold Regression Analysis," Sustainability, MDPI, vol. 14(23), pages 1-17, November.
    6. Asif Khan & Wu Ximei, 2022. "Digital Economy and Environmental Sustainability: Do Information Communication and Technology (ICT) and Economic Complexity Matter?," IJERPH, MDPI, vol. 19(19), pages 1-21, September.
    7. Xu, Qiong & Zhong, Meirui & Li, Xin, 2022. "How does digitalization affect energy? International evidence," Energy Economics, Elsevier, vol. 107(C).
    8. Zhang, Qianxiao & Shah, Syed Ale Raza & Yang, Ling, 2022. "An Appreciated Response of Disaggregated Energies Consumption towards the Sustainable Growth: A debate on G-10 Economies," Energy, Elsevier, vol. 254(PA).
    9. Sun, Xianming & Xiao, Shiyi & Ren, Xiaohang & Xu, Bing, 2023. "Time-varying impact of information and communication technology on carbon emissions," Energy Economics, Elsevier, vol. 118(C).
    10. Wang, Lianghu & Shao, Jun, 2023. "Digital economy, entrepreneurship and energy efficiency," Energy, Elsevier, vol. 269(C).
    11. Lin, Boqiang & Huang, Chenchen, 2023. "How will promoting the digital economy affect electricity intensity?," Energy Policy, Elsevier, vol. 173(C).
    12. Theile, Philipp & Farag, Markos & Kopp, Thomas, 2022. "Does information substitute or complement energy? - A mediation analysis of their relationship in European economies," VfS Annual Conference 2022 (Basel): Big Data in Economics 264123, Verein für Socialpolitik / German Economic Association.
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    More about this item

    Keywords

    Africa; Energy demand; Information communication technology;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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