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The Role of Information Communication Technology and Economic Growth in Recent Electricity Demand: Fresh Evidence from Combine Cointegration Approach in UAE

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  • Shahbaz, Muhammad
  • Sbia, Rashid
  • HAMDI, Helmi
  • Ur Rehman, Ijaz

Abstract

This paper investigates relationship between information communication technology (ICT), economic growth and electricity consumption using data of UAE over the period of 1975-2011.We have tested the unit properties of variables and the Bayer and Hanck combined cointegration approach for long run relationship. The innovative accounting approach is applied to test the robustness of the VECM Granger causality findings. Our empirical results confirm the existence of cointegration between the series. We find that ICT adds in electricity demand but electricity prices lower it. Income growth increases electricity consumption. The non-linear relationship between ICT and electricity consumption is an Inverted U-shaped. The causality results reveal that ICT and electricity prices Granger cause electricity demand. The feedback effect exists between economic growth and electricity consumption

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:53226
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    Cited by:

    1. Zied Ftiti & Aviral Tiwari & Amél Belanès & Khaled Guesmi, 2014. "Tests of Financial Market Contagion: Evolutionary Cospectral Analysis V.S. Wavelet Analysis," Working Papers 2014-577, Department of Research, Ipag Business School.
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    3. repec:ipg:wpaper:2014-535 is not listed on IDEAS
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    6. Simplice Asongu & Jacinta C. Nwachukwu, 2017. "ICT, Financial Sector Development and Financial Access," Working Papers 17/006, African Governance and Development Institute..
    7. Simplice Asongu & Ndemaze Asongu, 2017. "The role of mobile phones in governance-driven technology exports in Sub-Saharan Africa," Working Papers 17/036, African Governance and Development Institute..
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    More about this item

    Keywords

    ICT; Growth; Electricity; UAE;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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