Electricity consumption and information and communication technology in the next eleven emerging economies

Afzal, Munshi Naser Ibne and Gow, Jeff (2016) Electricity consumption and information and communication technology in the next eleven emerging economies. International Journal of Energy Economics and Policy, 6 (3). pp. 381-388. ISSN 2146-4553

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Abstract

In this study, the impact of information communication technologies (ICT) on electricity consumption in the Next 11 (N-11) emerging economies over the period 1990-2014 is examined. This period coincides with high economic growth rates in those countries and associated rapidly increasing electricity consumption as well as the ICT revolution that saw the rapid uptake of new ICT by its peoples. Little has been published on the relationship between ICT and electricity consumption in the N-11 emerging economies. This paper examines the hypothesis that increased use of ICT increases electricity consumption. Secondly, how different measures of ICT affect electricity consumption and finally, what are the short-run and long run elasticities of electricity demand with respect to ICT in N-11 countries? The methods used included dynamic panel data models (MG, PMG, system GMM) and show a positive and statistically significant relationship between ICT and electricity consumption where ICT is measured using internet connections, mobile phones or the import percentage of ICT goods of total imports. Long run ICT elasticities are smaller than income elasticities but because ICT growth rates are so much higher than economic growth rates, the impact of ICT on electricity consumption is greater than the impact of income on electricity consumption. Electricity demand projections in emerging economies, which do not include ICT as an explanatory variable, may underestimate actual electricity demand. This can lead to unplanned electricity shortages if actual electricity demand exceeds planned electricity demand. Thus, the paper gives policy recommendations based on the empirical results for the N-11 countries to address this problem.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: This work is licensed under a Creative Commons Attribution 4.0 International License.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 14 Sep 2016 00:02
Last Modified: 14 Sep 2016 00:02
Uncontrolled Keywords: N-11 countries, ICT, Electricity Consumption, Panel data, MGE, PMGE, system GMM
Fields of Research : 14 Economics > 1402 Applied Economics > 140201 Agricultural Economics
Socio-Economic Objective: B Economic Development > 85 Energy > 8507 Energy Conservation and Efficiency > 850703 Industrial Energy Conservation and Efficiency
URI: http://eprints.usq.edu.au/id/eprint/29704

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