ICT, Carbon Emissions, Climate Change, and Energy Demand Nexus: The Potential Benefit of Digitalization in Taiwan

Published, Energy & Environment Journal

28 Pages Posted: 11 May 2022 Last revised: 29 May 2022

See all articles by Rishan Adha

Rishan Adha

Chaoyang University of Technology

Cheng-Yih Hong

Chaoyang University of Technology

Somya Agrawal

affiliation not provided to SSRN

Li Hua

affiliation not provided to SSRN

Date Written: February 1, 2022

Abstract

The global rise in energy consumption makes managing energy demands a priority. Here, the potential of Information and Communication Technology (ICT) in controlling energy consumption is still debated. Within this context, the main objective of the current study is to measure the impact of ICT, its potential benefit, and environmental factors on household electricity demand in Taiwan. A panel of data from 20 cities in Taiwan was collected during the period 2004-2018. We adopted PMG estimation and applied the DH-causality test for analysis. The estimation results show that ICT, carbon emissions, and climate change will drive household electricity demand in Taiwan in the long term. However, ICT has a higher potential to reduce electricity demand in the short-term period. In addition, the results of the causality test reveal a two-way interrelationship between ICT and electricity demand. Our study also found that climate change indirectly affects the use of electricity through household appliances. We also presented several policy implications at the end of this paper.

Keywords: energy demand, ICT, carbon emissions, climate change, dynamic panel data model

JEL Classification: C3, C33, Q4, Q41

Suggested Citation

Adha, Rishan and Hong, Cheng-Yih and Agrawal, Somya and Hua, Li, ICT, Carbon Emissions, Climate Change, and Energy Demand Nexus: The Potential Benefit of Digitalization in Taiwan (February 1, 2022). Published, Energy & Environment Journal, Available at SSRN: https://ssrn.com/abstract=4104936 or http://dx.doi.org/10.2139/ssrn.4104936

Rishan Adha (Contact Author)

Chaoyang University of Technology ( email )

No. 168, Jifong E. Rd., Wufong Township
Taichung County, Taiwan 41349
Taiwan
0962012318 (Phone)
413 (Fax)

Cheng-Yih Hong

Chaoyang University of Technology ( email )

No. 168, Jifong E. Rd., Wufong Township
Taichung County, Taiwan 41349
Taiwan

Somya Agrawal

affiliation not provided to SSRN

Li Hua

affiliation not provided to SSRN

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