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Information communication technology and electricity consumption in emerging economies

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  • Sadorsky, Perry

Abstract

This study examines the impact of information communication technology (ICT) on electricity consumption in emerging economies. The empirical results, obtained from dynamic panel demand models, show a positive and statistically significant relationship between ICT and electricity consumption when ICT is measured using internet connections, mobile phones or the number of PCs. Long-run ICT elasticities are smaller than income elasticities but because ICT growth rates are so much higher than income growth rates, the impact of ICT on electricity demand is greater than the impact of income on electricity demand. One implication of these results is that policies designed to close the “digital divide” between developed and developing economics by increasing the adoption of ICT in developing countries are put at odds with energy policies to reduce GHG emissions.

Suggested Citation

  • Sadorsky, Perry, 2012. "Information communication technology and electricity consumption in emerging economies," Energy Policy, Elsevier, vol. 48(C), pages 130-136.
  • Handle: RePEc:eee:enepol:v:48:y:2012:i:c:p:130-136
    DOI: 10.1016/j.enpol.2012.04.064
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    References listed on IDEAS

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    2. 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.
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    4. Herrmann-Pillath, Carsten, 2015. "Energy, growth, and evolution: Towards a naturalistic ontology of economics," Ecological Economics, Elsevier, vol. 119(C), pages 432-442.
    5. Munshi Naser Ibne Afzal & Munshi Naser Ibne Afzal & Jeff Gow & Jeff Gow, 2016. "Electricity Consumption and Information and Communication Technology in the Next Eleven Emerging Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 381-388.
    6. Salahuddin, Mohammad & Alam, Khorshed & Ozturk, Ilhan, 2016. "The effects of Internet usage and economic growth on CO2 emissions in OECD countries: A panel investigation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 1226-1235.
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    9. Ibrahim D. Raheem & Aviral K. Tiwari & Daniel Balsalobre-lorente, 2019. "The Role of ICT and Financial Development on CO2 Emissions and Economic Growth," Working Papers 19/058, European Xtramile Centre of African Studies (EXCAS).
    10. 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.
    11. Manas Tripathi & Sarveshwar Kumar Inani, 2016. "Does internet affect economic growth in sub-Saharan Africa?," Economics Bulletin, AccessEcon, vol. 36(4), pages 1993-2002.
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    16. Khayyat, Nabaz T. & Lee, Jongsu & Lee, Jeong-Dong, 2014. "How ICT Investment Influences Energy Demand in South Korea and Japan?," MPRA Paper 55454, University Library of Munich, Germany.
    17. Khan, Muhammad Azhar & Khan, Muhammad Zahir & Zaman, Khalid & Irfan, Danish & Khatab, Humera, 2014. "Questing the three key growth determinants: Energy consumption, foreign direct investment and financial development in South Asia," Renewable Energy, Elsevier, vol. 68(C), pages 203-215.
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    20. 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.
    21. Shah, Imran Hussain & Hiles, Charlie & Morley, Bruce, 2018. "How do oil prices, macroeconomic factors and policies affect the market for renewable energy?," Applied Energy, Elsevier, vol. 215(C), pages 87-97.

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