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ICT and the demand for energy: Evidence from OECD countries

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  • Rexhaeuser, Sascha
  • Schulte, Patrick
  • Welsch, Heinz

Abstract

This paper analyzes the relationship between information and communication technology (ICT) and energy demand. We construct a comprehensive cross-country cross-industry panel data set covering 13 years, 10 OECD countries, and 27 industries. Using up to 2889 country-industry observations, we find that: (1) ICT capital is associated with a significant reduction in energy demand. (2) This relationship differs with regard to different types of energy. ICT use is not significantly correlated with electricity demand, but is significantly related to a reduction in non-electric energy demand. That is, ICT use comes with a reduction in total energy demand and an increase in the relative demand for electric over non-electric energy.

Suggested Citation

  • Rexhaeuser, Sascha & Schulte, Patrick & Welsch, Heinz, 2013. "ICT and the demand for energy: Evidence from OECD countries," ZEW Discussion Papers 13-116, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:13116
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    More about this item

    Keywords

    technical change; ICT; energy demand; energy efficiency; energy mix; Green IT; cross-country cross-industry data; environmental policy;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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