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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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    3. 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.
    4. Shobande, Olatunji A. & Asongu, Simplice A., 2022. "The Critical Role of Education and ICT in Promoting Environmental Sustainability in Eastern and Southern Africa: A Panel VAR Approach," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
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    6. Simplice A. Asongu & Jacinta C. Nwachukwu, 2019. "ICT, Financial Sector Development and Financial Access," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 465-490, June.
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    8. Bester Chimbo, 2020. "Information and Communication Technology and Electricity Consumption in Transitional Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 296-302.
    9. repec:ipg:wpaper:2014-547 is not listed on IDEAS
    10. Sakiru Adebola Solarin & Muhammad Shahbaz & Habib Nawaz Khan & Radzuan Bin Razali, 2021. "ICT, Financial Development, Economic Growth and Electricity Consumption: New Evidence from Malaysia," Global Business Review, International Management Institute, vol. 22(4), pages 941-962, August.
    11. Guido Migliaccio, 2019. "Disabled People in the Stakeholder Theory: a Literature Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(4), pages 1657-1678, December.
    12. Hongzhong Fan & Md Ismail Hossain, 2018. "Technological Innovation, Trade Openness, CO2 Emission and Economic Growth: Comparative Analysis between China and India," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 240-257.
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    14. Oseghale Baryl Ihayere & Philip Olasupo Alege & Obindah Gershon & Jeremiah Ogaga Ejemeyovwi & Praise Daramola, 2021. "Information Communication Technology Access and Use towards Energy Consumption in Selected Sub Saharan Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 471-477.
    15. Adams, Samuel & Klobodu, Edem Kwame Mensah & Opoku, Eric Evans Osei, 2016. "Energy consumption, political regime and economic growth in sub-Saharan Africa," Energy Policy, Elsevier, vol. 96(C), pages 36-44.
    16. repec:ipg:wpaper:2014-549 is not listed on IDEAS
    17. Shumaila Zeb, 2022. "The role of knowledge economy in Asian business," Future Business Journal, Springer, vol. 8(1), pages 1-13, December.

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    More about this item

    Keywords

    ICT; Growth; Electricity; UAE;
    All these keywords.

    JEL classification:

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

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