IDEAS home Printed from https://ideas.repec.org/a/spr/nathaz/v84y2016i1d10.1007_s11069-016-2188-1.html
   My bibliography  Save this article

Effect of information and communication technology on energy consumption in China

Author

Listed:
  • Botang Han

    (Beijing Institute of Technology)

  • Dong Wang

    (Beijing Institute of Technology)

  • Weina Ding

    (Beijing Institute of Technology)

  • Lei Han

    (Beijing Institute of Technology)

Abstract

Widespread controversy and a lack of empirical research exist with regard to the relationship between information communication technology (ICT) and energy consumption, especially in developing countries. This paper adopts a partial least square (PLS) method to explore the impact of ICT on energy consumption in China. Its main conclusions indicate that the impact can be represented by a U-shaped curve and the turning-point for ICT capital service is 10.93 units at 1990 constant prices. The negative effect of ICT was dominant until 2014. Moreover, the ARDL-ECM results also reveal a negative association between ICT and energy consumption in the short run. In addition, the influence of population, income, industrialization level, service sector development, energy price, energy consumption structure and non-ICT capital service on energy consumption is examined. Finally, policy recommendations are given.

Suggested Citation

  • Botang Han & Dong Wang & Weina Ding & Lei Han, 2016. "Effect of information and communication technology on energy consumption in China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 297-315, November.
  • Handle: RePEc:spr:nathaz:v:84:y:2016:i:1:d:10.1007_s11069-016-2188-1
    DOI: 10.1007/s11069-016-2188-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11069-016-2188-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11069-016-2188-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    2. Jia, Junsong & Deng, Hongbing & Duan, Jing & Zhao, Jingzhu, 2009. "Analysis of the major drivers of the ecological footprint using the STIRPAT model and the PLS method--A case study in Henan Province, China," Ecological Economics, Elsevier, vol. 68(11), pages 2818-2824, September.
    3. Ronald Bernstein & Reinhard Madlener, 2010. "Impact of disaggregated ICT capital on electricity intensity in European manufacturing," Applied Economics Letters, Taylor & Francis Journals, vol. 17(17), pages 1691-1695.
    4. John HOUGHTON, 2009. "ICT and the Environment in Developing Countries: an Overview of Opportunities and Developments," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(76), pages 39-60, 4th quart.
    5. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    6. Cho, Youngsang & Lee, Jongsu & Kim, Tai-Yoo, 2007. "The impact of ICT investment and energy price on industrial electricity demand: Dynamic growth model approach," Energy Policy, Elsevier, vol. 35(9), pages 4730-4738, September.
    7. Alfred A. Haug, 2002. "Temporal Aggregation and the Power of Cointegration Tests: a Monte Carlo Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(4), pages 399-412, September.
    8. Walker, William, 1985. "Information technology and the use of energy," Energy Policy, Elsevier, vol. 13(5), pages 458-476, October.
    9. Takase, Kae & Murota, Yasuhiro, 2004. "The impact of IT investment on energy: Japan and US comparison in 2010," Energy Policy, Elsevier, vol. 32(11), pages 1291-1301, July.
    10. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    11. Hall, S G, 1986. "An Application of the Granger & Engle Two-Step Estimation Procedure to United Kingdom Aggregate Wage Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 229-239, August.
    12. Alice Shiu & Pun-Lee Lam, 2008. "Causal Relationship between Telecommunications and Economic Growth in China and its Regions," Regional Studies, Taylor & Francis Journals, vol. 42(5), pages 705-718.
    13. Shi, Anqing, 2003. "The impact of population pressure on global carbon dioxide emissions, 1975-1996: evidence from pooled cross-country data," Ecological Economics, Elsevier, vol. 44(1), pages 29-42, February.
    14. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    15. Sadorsky, Perry, 2012. "Information communication technology and electricity consumption in emerging economies," Energy Policy, Elsevier, vol. 48(C), pages 130-136.
    16. Zhang, Chuanguo & Lin, Yan, 2012. "Panel estimation for urbanization, energy consumption and CO2 emissions: A regional analysis in China," Energy Policy, Elsevier, vol. 49(C), pages 488-498.
    17. Eric Masanet & H. Scott Matthews, 2010. "Exploring Environmental Applications and Benefits of Information and Communication Technology," Journal of Industrial Ecology, Yale University, vol. 14(5), pages 687-691, October.
    18. Nawaz, Saima & Iqbal, Nasir & Anwar, Saba, 2014. "Modelling electricity demand using the STAR (Smooth Transition Auto-Regressive) model in Pakistan," Energy, Elsevier, vol. 78(C), pages 535-542.
    19. Feng, Taiwen & Sun, Linyan & Zhang, Ying, 2009. "The relationship between energy consumption structure, economic structure and energy intensity in China," Energy Policy, Elsevier, vol. 37(12), pages 5475-5483, December.
    20. Collard, Fabrice & Feve, Patrick & Portier, Franck, 2005. "Electricity consumption and ICT in the French service sector," Energy Economics, Elsevier, vol. 27(3), pages 541-550, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zheming Yan & Rui Shi & Zhiming Yang, 2018. "ICT Development and Sustainable Energy Consumption: A Perspective of Energy Productivity," Sustainability, MDPI, vol. 10(7), pages 1-15, July.
    2. Asif Razzaq & Arshian Sharif & Paiman Ahmad & Kittisak Jermsittiparsert, 2021. "Asymmetric role of tourism development and technology innovation on carbon dioxide emission reduction in the Chinese economy: Fresh insights from QARDL approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 176-193, January.
    3. Xueyang Wang & Xiumei Sun & Haotian Zhang & Mahmood Ahmad, 2022. "Digital Economy and Environmental Quality: Insights from the Spatial Durbin Model," IJERPH, MDPI, vol. 19(23), pages 1-23, December.
    4. Bester Chimbo, 2020. "Information and Communication Technology and Electricity Consumption in Transitional Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 296-302.
    5. Sakiru Adebola Solarin & Muhammad Shahbaz & Habib Nawaz Khan & Radzuan Bin Razali, 2021. "ICT, Financial Development, Economic Growth and Electricity Consumption: New Evidence from Malaysia," Global Business Review, International Management Institute, vol. 22(4), pages 941-962, August.
    6. Oseghale Baryl Ihayere & Philip Olasupo Alege & Obindah Gershon & Jeremiah Ogaga Ejemeyovwi & Praise Daramola, 2021. "Information Communication Technology Access and Use towards Energy Consumption in Selected Sub Saharan Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 471-477.
    7. 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.
    8. Ziling Yu & Ruoxuan Li & Lili Ma, 2022. "Has the Digital Economy Affected the Status of a Country’s Energy Trade Network?," Sustainability, MDPI, vol. 14(23), pages 1-14, November.
    9. Lin, Boqiang & Huang, Chenchen, 2023. "Nonlinear relationship between digitization and energy efficiency: Evidence from transnational panel data," Energy, Elsevier, vol. 276(C).
    10. Pingguo Xu & Leyi Chen & Huajuan Dai, 2022. "Pathways to Sustainable Development: Corporate Digital Transformation and Environmental Performance in China," Sustainability, MDPI, vol. 15(1), pages 1-21, December.
    11. 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.
    12. Bochao Zhang & Wanhao Dong & Jin Yao, 2022. "How Does Digital Transformation of City Governance Affect Environmental Pollution: A Natural Experiment from the Pilot Policy of “National Information City for Public Service” in China," Sustainability, MDPI, vol. 14(21), pages 1-23, October.
    13. Daniela Firoiu & George H. Ionescu & Ramona Pîrvu & Laura Mariana Cismaș & Sorin Tudor & Ioana C. Patrichi, 2021. "Dynamics of Implementation of SDG 7 Targets in EU Member States 5 Years after the Adoption of the Paris Agreement," Sustainability, MDPI, vol. 13(15), pages 1-22, July.
    14. An, Hui & Xu, Jianjun & Ma, Xuejiao, 2020. "Does technological progress and industrial structure reduce electricity consumption? Evidence from spatial and heterogeneity analysis," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 206-220.
    15. Zhou, Xiaoyong & Zhou, Dequn & Wang, Qunwei, 2018. "How does information and communication technology affect China's energy intensity? A three-tier structural decomposition analysis," Energy, Elsevier, vol. 151(C), pages 748-759.
    16. Kunkel, S. & Neuhäusler, P. & Matthess, M. & Dachrodt, M.F., 2023. "Industry 4.0 and energy in manufacturing sectors in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    17. Wu, Haitao & Hao, Yu & Ren, Siyu & Yang, Xiaodong & Xie, Guo, 2021. "Does internet development improve green total factor energy efficiency? Evidence from China," Energy Policy, Elsevier, vol. 153(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhou, Xiaoyong & Zhou, Dequn & Wang, Qunwei, 2018. "How does information and communication technology affect China's energy intensity? A three-tier structural decomposition analysis," Energy, Elsevier, vol. 151(C), pages 748-759.
    2. Ahmed, Khalid, 2015. "The sheer scale of China’s urban renewal and CO2 emissions: Multiple structural breaks, long-run relationship and short-run dynamics," MPRA Paper 71035, University Library of Munich, Germany.
    3. Shahiduzzaman, Md. & Alam, Khorshed, 2014. "The long-run impact of Information and Communication Technology on economic output: The case of Australia," Telecommunications Policy, Elsevier, vol. 38(7), pages 623-633.
    4. Dehghan Shabani, Zahra & Shahnazi, Rouhollah, 2019. "Energy consumption, carbon dioxide emissions, information and communications technology, and gross domestic product in Iranian economic sectors: A panel causality analysis," Energy, Elsevier, vol. 169(C), pages 1064-1078.
    5. Patrick Schulte & Heinz Welsch & Sascha Rexhäuser, 2016. "ICT and the Demand for Energy: Evidence from OECD Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(1), pages 119-146, January.
    6. Taneja, Shivani & Mandys, Filip, 2022. "The effect of disaggregated information and communication technologies on industrial energy demand," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).
    7. Kouton, Jeffrey, 2019. "Information Communication Technology development and energy demand in African countries," Energy, Elsevier, vol. 189(C).
    8. Bibhuti Sarker & Farid Khan, 2020. "Nexus between foreign direct investment and economic growth in Bangladesh: an augmented autoregressive distributed lag bounds testing approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-18, December.
    9. Bakry, Walid & Nghiem, Xuan-Hoa & Farouk, Sherine & Vo, Xuan Vinh, 2023. "Does it hurt or help? Revisiting the effects of ICT on economic growth and energy consumption: A nonlinear panel ARDL approach," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 597-617.
    10. Shahbaz, Muhammad & Sbia, Rashid & HAMDI, Helmi & Ur Rehman, Ijaz, 2014. "The Role of Information Communication Technology and Economic Growth in Recent Electricity Demand: Fresh Evidence from Combine Cointegration Approach in UAE," MPRA Paper 53226, University Library of Munich, Germany, revised 25 Jan 2014.
    11. Kais Saidi & Hassen Toumi & Saida Zaidi, 2017. "Impact of Information Communication Technology and Economic Growth on the Electricity Consumption: Empirical Evidence from 67 Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(3), pages 789-803, September.
    12. Satti, Saqlain Latif & Farooq, Abdul & Loganathan, Nanthakumar & Shahbaz, Muhammad, 2014. "Empirical evidence on the resource curse hypothesis in oil abundant economy," Economic Modelling, Elsevier, vol. 42(C), pages 421-429.
    13. Hong, Junjie & Shi, Fangyuan & Zheng, Yuhan, 2023. "Does network infrastructure construction reduce energy intensity? Based on the “Broadband China” strategy," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    14. Sulaiman, Saidu & Masih, Mansur, 2017. "Is liberalizing finance the game in town for Nigeria ?," MPRA Paper 95569, University Library of Munich, Germany.
    15. Ekundayo P. Mesagan & Isaac A. Ogbuji & Yasiru O. Alimi & Anthonia T. Odeleye, 2019. "Growth Effects of Financial Market Instruments: The Ghanaian Experience," Working Papers 19/095, European Xtramile Centre of African Studies (EXCAS).
    16. Syed Tehseen Jawaid, 2014. "Trade Openness and Economic Growth," Foreign Trade Review, , vol. 49(2), pages 193-212, May.
    17. Ali, Amjad & Ur Rehman, Hafeez, 2015. "Macroeconomic Instability and Its Impact on Gross Domestic Product: An Empirical Analysis of Pakistan," MPRA Paper 71037, University Library of Munich, Germany.
    18. Muhammad Shahbaz & Faridul Islam, 2011. "Financial Development And Income Inequality In Pakistan: An Application Of Ardl Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(1), pages 35-58, March.
    19. Muhammad Shahbaz & Talat Afza & Muhammad Shahbaz Shabbir, 2013. "Financial Development, Domestic Savings and Poverty Reduction in Pakistan: Using Cointegration and Granger Causality Analysis," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 1(5), pages 59-73, May.
    20. Caraiani, Chirața & Lungu, Camelia I. & Dascălu, Cornelia, 2015. "Energy consumption and GDP causality: A three-step analysis for emerging European countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 198-210.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:nathaz:v:84:y:2016:i:1:d:10.1007_s11069-016-2188-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.