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Energy and Electricity Consumption of the Information Economy Sector in Finland

Author

Listed:
  • Hiekkanen, Kari
  • Seppälä, Timo
  • Ylhäinen, Ilkka

Abstract

The role of digital technologies is becoming increasingly important in our day-to-day life. Digital technologies have become part of our social life as well as business operations across different industrial and public sectors. Because of digitalization, the internet protocol and data traffic have been on the rise for several years. Several estimates of the growth in energy consumption of data networks and the information economy sector have been presented in recent years. Occasionally consumer behavior has been claimed to be behind of these increases in electricity use. This report analyzes the energy and electricity consumption of the Finnish information economy sector from 2011 until 2018. Additionally, we compare the Finnish electricity use to other European countries with similar data available. Our report shows that the energy efficiency of the technologies used in the information sector has not kept pace with the growth in the volumes of data transferred on fixed and mobile networks.

Suggested Citation

  • Hiekkanen, Kari & Seppälä, Timo & Ylhäinen, Ilkka, 2021. "Energy and Electricity Consumption of the Information Economy Sector in Finland," ETLA Reports 107, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:107
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    File URL: https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-107.pdf
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    References listed on IDEAS

    as
    1. Kalm, Matias & Seppälä, Timo & Ali-Yrkkö, Jyrki, 2014. "Who Captures Value in Digital Services?," ETLA Brief 27, The Research Institute of the Finnish Economy.
    2. Hanna Pihkola & Mikko Hongisto & Olli Apilo & Mika Lasanen, 2018. "Evaluating the Energy Consumption of Mobile Data Transfer—From Technology Development to Consumer Behaviour and Life Cycle Thinking," Sustainability, MDPI, vol. 10(7), pages 1-16, July.
    3. Astrid Kander & Paolo Malanima & Paul Warde, 2013. "Power to the People: Energy in Europe over the Last Five Centuries," Economics Books, Princeton University Press, edition 1, number 10138.
    4. Eric Williams, 2011. "Environmental effects of information and communications technologies," Nature, Nature, vol. 479(7373), pages 354-358, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Information economy sector; ICT sector; IP traffic; Data usage; Energy consumption; Electricity consumption;
    All these keywords.

    JEL classification:

    • L8 - Industrial Organization - - Industry Studies: Services
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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