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The Electricity- and CO2-Saving Potentials Offered by Regulation of European Video-Streaming Services

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Abstract

Massive increases in Internet data traffic over the last years have led to rapidly rising electricity demand and CO2 emissions, giving rise to environmental externalities and network congestion costs. One particular concern is the rise in data traffic generated by video-streaming services. We analyze the electricity-saving potential related to video streaming in Europe from 2020 to 2030. To this end, three trend scenarios (Business-as-usual, Gray, and Green) are considered and modeled bottom-up, taking specific energy consumption (and trends) of data transmission networks, end-use devices, and data centers into account. Using these scenarios, we examine in more detail the approximate energy-saving impact that regulatory interventions and technical standards can have on the electricity consumption of end-users, network operators, and data centers. The model results reveal that regulatory intervention can have a significant impact on energy consumption and CO2 emissions. As technical regulation carries the risk of stymieing innovation and dynamic efficiency, we propose economic regulation in terms of a mandatory transit fee as a long-term solution.

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  • Madlener, Reinhard & Sheykkha, Siamak & Briglauer, Wolfgang, 2021. "The Electricity- and CO2-Saving Potentials Offered by Regulation of European Video-Streaming Services," FCN Working Papers 5/2021, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    • Handle: RePEc:ris:fcnwpa:2021_005
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    Cited by:

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    3. Charfeddine, Lanouar & Umlai, Mohamed, 2023. "ICT sector, digitization and environmental sustainability: A systematic review of the literature from 2000 to 2022," Renewable and Sustainable Energy Reviews, Elsevier, vol. 184(C).
    4. Davide Quaglione & Dario D’Ingiullo & Linda Meleo, 2023. "Fixed and mobile broadband penetration and CO2 emissions: evidence from OECD countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(3), pages 795-816, October.
    5. Schöpper, Yannick & Digmayer, Claas & Bartusch, Raphaela & Ebrahim, Ola & Hermens, Sarah & Nejabat, Razieh & Steireif, Niklas & Wendorff, Jannik & Jakobs, Eva-Maria & Lohrberg, Frank & Madlener, Reinh, 2023. "Developing a Niche Readiness Level Model to Assess Socio-Economic Maturity: The Case of DC Technologies in the Transition to Flexible Electrical Networks," FCN Working Papers 11/2023, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    6. Zhang, Weike & Fan, Hongxia & Zhao, Qiwei, 2023. "Seeing green: How does digital infrastructure affect carbon emission intensity?," Energy Economics, Elsevier, vol. 127(PB).
    7. Liu, Xueying & Madlener, Reinhard, 2021. "Economic Benefits of Direct Current Technology for Private Households and Peer-to-Peer Trading in Germany," FCN Working Papers 7/2021, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).

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    More about this item

    Keywords

    Video streaming; Scenario analysis; Electricity-saving potential; Energy efficiency improvement; User behavior; Market failure; Internet traffic regulation;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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