Assessing the influence of Information and Communication Technologies on energy productivity

Abstract

The digitalization current is among one of the most relevant factors that currently drive transformation in the economy, with different degrees of impact across the main segments of the economy. As the topic of sustainability is now on the agenda of the biggest economic players, digitalization and the ability to leverage Information and Communication Technology opportunities have been recognized as drivers for innovation and change and a means to reach the sustainability goals. Reaching energy efficiency has been among the main objectives of both the public and the private sectors, leading to an increased interest in recognizing and capitalizing on energy efficiency opportunities. This in turn has an impact on the overall energy productivity, defined as the economic output per unit of energy. While this indicator has relevance at both micro and macro level, it is important to identify which makes some countries perform better than others. In the current economic context, studying how the performance of countries in the digital era correlates with the energy productivity can reveal further information on how it can be improved. The Networked Readiness Index is an indicator which assesses how well a country can capitalize on digital technologies and whether their usage of Information and Communication Technology has a relevant socio-economic impact. This paper analyzes which components that are assessed in a country’s Networked Readiness Index might influence energy productivity. Based on a panel data analysis performed on European countries, the study identifies that the individual usage of Information and Communication Technologies, the business and innovation environment and the usage of ICT by the business segment could have an impact on the energy productivity of a country.