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Internet Usage, Electricity Consumption and Economic Growth: Evidence from a Panel of Developing-8 Countries

Author

Listed:
  • Marzieh Rahimi

    (Department of Economics, Abarkouh Branch, Islamic Azad University, Abarkouh, Iran,)

  • Abbas Alavi Rad

    (Department of Economics, Abarkouh Branch, Islamic Azad University, Abarkouh, Iran)

Abstract

This paper attempts to estimate the short- and long-run effects of Internet usage and economic growth on electricity consumption using developing-8 (D-8) countries panel data for the period of 1990-2013. The paper employs panel unit root test, panel cointegration test, the pooled mean group regression technique and Dumitrescu Hurlin causality test. The results show that Internet usage effect on electricity consumption only in the long-run. However, economic growth effects on electricity consumption in both the short- and long-run. Causality results imply that Internet use causes electricity consumption. It is clear that with the expansion of Internet usage in D-8 countries in the long-run, the electricity demand will rise as evident from our findings. Therefore, D-8 countries to response for increasing demand for electricity need to improve electricity generation efficiency. In addition, D-8 countries should consider the increasing demand for electricity and subsequently its increasing consumption will raise the level of CO2 emissions.

Suggested Citation

  • Marzieh Rahimi & Abbas Alavi Rad, 2017. "Internet Usage, Electricity Consumption and Economic Growth: Evidence from a Panel of Developing-8 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 152-156.
    • Handle: RePEc:eco:journ2:2017-03-19
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    References listed on IDEAS

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    Cited by:

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    3. Nabil Ahmed Mareai Senan & Haider Mahmood & Sehrish Liaquat, 2018. "Financial Markets and Electricity Consumption Nexus in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 12-16.
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    6. Alexander Bass, 2018. "Financial Markets and Electricity Consumption Nexus in Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 82-86.
    7. Valentina Romagnoli & Joachim Felix Aigner & Thomas Berlinghof & Niki Bey & Jan-Markus Rodger & Cordelia Patz, 2020. "Identification and assessment of opportunities and threats for the Circular Economy arising from E-commerce," JRC Research Reports JRC122233, Joint Research Centre.
    8. Bakari, Sayef & El Weriemmi, Malek & Mabrouki, Mohamed, 2022. "The Impact of Digitalization and Trade Openness on Economic Growth: New Evidence from Richest Asian Countries," MPRA Paper 113816, University Library of Munich, Germany.
    9. Max Freidin & Dmitry Burakov, 2018. "Economic Growth, Electricity Consumption and Internet Usage Nexus: Evidence from a Panel of Commonwealth of Independent States," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 267-272.
    10. Amaluddin Amaluddin, 2020. "The Dynamic Link of Electricity Consumption, Internet Access and Economic Growth in 33 Provinces of Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 309-317.

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    More about this item

    Keywords

    Electricity Consumption; Internet Usage; Developing-8 Countries; Panel Data; Pooled Mean Group;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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