Internet usage, electricity consumption and economic growth in Australia: a time series evidence

Salahuddin, Mohammad and Alam, Khorshed (2015) Internet usage, electricity consumption and economic growth in Australia: a time series evidence. Telematics and Informatics , 32 (4). pp. 862-878. ISSN 0736-5853


This study estimates the short- and long-run effects of the Internet usage and economic growth on electricity consumption using annual time series macro data for Australia for the period 1985–2012. ARDL bounds test for cointegration and Granger causality test for causal link are applied. Results from ARDL estimates indicate that the Internet use and economic growth stimulate electricity consumption in Australia. Internet usage and economic growth have no significant short-run relationship with electricity consumption. Multivariate Granger causality test confirms unidirectional causal link running from
Internet usage to economic growth and electricity consumption. The findings are robust cross different econometric specifications. The findings imply that Australia is yet to achieve electricity efficiency gains from ICT expansion and that it may pursue energy conservation policy without any adverse effect on its economy. Australia needs to promote its existing carbon capture and storage facilities, significantly boost investment in the renewable energy sector, in particular, in solar energy and build nuclear power plants for electricity generation to reduce CO2 emissions. Also promoting green IT and IT for green might be potential means to curb environmental damage from Internet usage. A coordination between ICT policy, energy policy and growth policy is also recommended.

Statistics for USQ ePrint 27375
Statistics for this ePrint Item
Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version in accordance with the copyright policy of the publisher.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 01 Jun 2015 03:02
Last Modified: 30 Jun 2016 03:55
Uncontrolled Keywords: ARDL, Australia, economic growth, electricity consumption, granger causality, internet usage
Fields of Research : 08 Information and Computing Sciences > 0806 Information Systems > 080602 Computer-Human Interaction
14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objective: B Economic Development > 85 Energy > 8504 Energy Transformation > 850499 Energy Transformation not elsewhere classified
B Economic Development > 89 Information and Communication Services > 8901 Communication Networks and Services > 890199 Communication Networks and Services not elsewhere classified
Identification Number or DOI: 10.1016/j.tele.2015.04.011

Actions (login required)

View Item Archive Repository Staff Only