Information and communication technology, electricity consumption and economic growth in OECD countries: a panel data analysis

Salahuddin, Mohammad and Alam, Khorshed (2016) Information and communication technology, electricity consumption and economic growth in OECD countries: a panel data analysis. International Journal of Electrical Power and Energy Systems, 76. pp. 185-193. ISSN 9142-0615

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This study estimates the short- and long-run effects of Information and Communication Technology (ICT) use and economic growth on electricity consumption using OECD panel data for the period of 1985 to 2012. The study employs a panel unit root test accounting for the presence of cross-sectional dependence, a panel cointegration test, the Pooled Mean Group regression technique and Dumitrescu-Hurlin causality test. The results confirm that both ICT use and economic growth stimulate electricity consumption in both the short- and the long run. Causality results suggest that electricity consumption causes economic growth. Both mobile and Internet use cause electricity consumption and economic growth. The findings imply that OECD countries have yet to achieve energy efficiency gains from ICT expansion. Effective coordination between energy efficiency from ICT policy and existing emissions reduction policies have the potential to enable OECD countries reduce environmental hazards arising from electricity consumption for ICT products and services. Introducing green IT and IT for green are also recommended as potential solutions to curb electricity consumption from ICT use especially in the data centers.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Accepted Version deposited 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: 16 Dec 2015 02:53
Last Modified: 14 Sep 2018 04:15
Uncontrolled Keywords: economic growth, electricity consumption, internet usage, OECD, panel data, Pooled Mean Group Regression
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140304 Panel Data Analysis
10 Technology > 1005 Communications Technologies > 100502 Broadband and Modem Technology
Socio-Economic Objective: B Economic Development > 89 Information and Communication Services > 8901 Communication Networks and Services > 890199 Communication Networks and Services not elsewhere classified
B Economic Development > 85 Energy > 8506 Energy Storage, Distribution and Supply > 850601 Energy Services and Utilities
B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
Identification Number or DOI: 10.1016/j.ijepes.2015.11.005

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