Impact of Information Communication Technology and Economic Growth on the Electricity Consumption: Empirical Evidence from 67 Countries

Abstract

This study investigated the impact of information communication technology (ICT) and economic growth (GDP) on electricity consumption (EC) for a global panel consisting of 67 countries using a dynamic panel data model. We also implement these empirical models for three income panels, namely, high income, middle income, and low income panels. The panel model was used in this study from the period 1990-2012. Our main findings show a positive and statistically significant effect of ICT on electricity consumption when ICT measured using Internet connections and mobile phones. Moreover, the results indicate that economic growth has a positive and statistical significant effect on electricity consumption for four global panels. Financial development is found to have a positive impact on electricity consumption in global panels, middle income, and low income panels. For the high income and middle income, the population has a positive and statistical significant effect on electricity consumption.

ICT Development and Sustainable Energy Consumption: A Perspective of Energy Productivity

“…While many studies revealed that the ICT had an energy saving effect [15][16][17], there are also some studies argued that it could stimulate energy use through various mechanisms [18][19][20][21], and some studies noted the differences of ICT's impacts among sectors [22] or groups of economies [23]. According to Takase and Murota [24], the overall impact can be divided into an income effect and a substitution effect.…”

Quadrilateral Relationship Between Information and Communications Technology, Patent Applications, Research and Development Expenditures, and Growth Factors: Evidence from the Group of Seven (G-7) Countries

“…The enormous increase in the ICT infrastructure in todays' world is one of the motivation for this study, specifically, mobile subscriptions in the developed countries that's increased by 107 % (and 187 % worldwide) between 2000 and 2010, while the internet users in the developed countries has increased by 102 % (and 153 % worldwide) for the same period (Saidi et al 2015). To what extent this ICT investment reflects value added is still unclear.…”

“…It is also noted that in most of the developed economies, the growth of energy consumption is slow comparing GDP (Saidi et al 2015), while the energy consumption increased drastically from 13,970 to 16,429 Twh within a period of 2 years i.e. -2009(International Energy Agency 2009.…”

Energy Consumption Between Routing and Bridging Protocol for Eco-Friendly Wireless Networks

“…Actually, mobile device that implements wireless technology infrastructure gives energy efficiency, but nowadays the increasing of data usage makes energy saving in vain [3]. It is no doubt that the increase of internet conection and mobile phones impacts the electricity consumption especially in developing country [4].…”

“…Actually, mobile device that implements wireless technology infrastructure gives energy efficiency, but nowadays the increasing of data usage makes energy saving in vain [3]. It is no doubt that the increase of internet conection and mobile phones impacts the electricity consumption especially in developing country [4].In other hand, the development of wireless networks as information and communication technology (ICT) certainly raises an effect [5], [6]. Theoretically, information and communication technology has a positive and significant relation with energy consumption [7], no exception with wireless technology.…”