ICT and the Demand for Energy: Evidence from OECD Countries

50 Pages Posted: 16 Jan 2014

See all articles by Sascha Rexhauser

Sascha Rexhauser

ZEW – Leibniz Centre for European Economic Research

Patrick Schulte

Deutsche Bundesbank

Heinz Welsch

University of Oldenburg; ZenTra - Center for Transnational Studies

Date Written: January 8, 2014

Abstract

This paper analyzes the relationship between information and communication technology (ICT) and energy demand. We construct a comprehensive cross-country cross-industry panel data set covering 13 years, 10 OECD countries, and 27 industries. Using up to 2889 country-industry observations, we find that: (1) ICT capital is associated with a significant reduction in energy demand. (2) This relationship differs with regard to different types of energy. ICT use is not significantly correlated with electricity demand, but is significantly related to a reduction in non-electric energy demand. That is, ICT use comes with a reduction in total energy demand and an increase in the relative demand for electric over non-electric energy.

Keywords: Technical Change; ICT; energy demand; energy efficiency; energy mix; Green IT; cross-country cross-industry data; environmental policy

JEL Classification: O33; O44; Q41; Q43

Suggested Citation

Rexhauser, Sascha and Schulte, Patrick and Welsch, Heinz, ICT and the Demand for Energy: Evidence from OECD Countries (January 8, 2014). ZEW - Centre for European Economic Research Discussion Paper No. 13-116. Available at SSRN: https://ssrn.com/abstract=2379483 or http://dx.doi.org/10.2139/ssrn.2379483

Sascha Rexhauser (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Patrick Schulte

Deutsche Bundesbank ( email )

Wilhelm-Epstein-Str. 14
Frankfurt/Main, 60431
Germany

Heinz Welsch

University of Oldenburg ( email )

Ammerländer Heerstraße 114-118
Oldenburg, D-26111
Germany

ZenTra - Center for Transnational Studies ( email )

Ammerländer Heerstraße 138
Oldenburg, 26131
Germany

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