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The Impact of ICT on Energy Consumption: Investigating the Roles of ICT Dimensions, Economic Development, and Energy Sources Across Low-, Middle-, and High-Income Countries

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Listed:
  • Kizito Uyi Ehigiamusoe

    (University of Southampton Malaysia)

  • Suresh Ramakrishnan

    (Universiti Teknologi Malaysia
    Sohar University)

  • Abdul Rahim Ridzuan

    (Universiti Teknologi MARA
    Universiti Teknologi MARA
    Accounting Research Institute (ARI), University Teknologi MARA
    Universiti Malaysia Sabah)

  • Naila Erum

    (Accounting Research Institute, Universiti Teknologi, MARA)

  • Daouia Chebab

    (University of Bahrain)

Abstract

This study provides insights into three issues regarding the nexus between information and communication technology (ICT) and energy consumption. First, what are the impacts of different dimensions of ICT development (i.e., fixed telephone subscriptions, mobile cellular subscriptions, fixed broadband subscriptions, and internet usage) on energy consumption? Second, how does ICT development influence energy consumption in nations with different levels of economic development? Third, how does ICT development affect renewable and non-renewable energy consumption? Using the generalized method of moments (GMM) on the panel data of 132 countries, this study indicates that fixed telephone subscriptions, mobile cellular subscriptions, and internet usage have positive impacts on energy consumption, while fixed broadband subscriptions have negative impacts. However, when the panel was split, the analysis reveals that mobile cellular subscriptions and internet usage positively influence energy consumption in high-income countries, while the impact is negative in low and middle-income countries. Moreover, when energy consumption was disaggregated, the analysis reveals that ICT dimensions have positive effects on renewable energy consumption, whereas ICT dimensions (except for fixed telephone subscriptions) have negative effects on non-renewable energy consumption. This study implies that ICT development is a fundamental determinant of energy consumption. Based on the empirical outcomes, this study recommends some policy options.

Suggested Citation

  • Kizito Uyi Ehigiamusoe & Suresh Ramakrishnan & Abdul Rahim Ridzuan & Naila Erum & Daouia Chebab, 2025. "The Impact of ICT on Energy Consumption: Investigating the Roles of ICT Dimensions, Economic Development, and Energy Sources Across Low-, Middle-, and High-Income Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 9018-9044, June.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:2:d:10.1007_s13132-024-02232-0
    DOI: 10.1007/s13132-024-02232-0
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    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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